India's trade ministry has sought to extend an export promotion scheme to reimburse some local levies for domestic steel producers, a senior government official said, as the industry reels from steep fall in shipments, APA reports citing Reuters.
The Remission of Duties and Taxes on Export Products (RoDTEP) scheme offers refunds against various embedded taxes to exporters across sectors such as automobiles and agricultural produce, with steel exports presently outside its remit.
Finished steel exports from the world's second-biggest crude steel producer more than halved during the first seven months of the fiscal year that began in April.
"The finance ministry’s revenue department will take a call on this, as expanding the scheme requires additional budgetary support," the official, who did not wish to be named, told Reuters.
New Delhi will have to set aside nearly $244 million annually to offer refunds on such taxes to the steel sector, the source added.