ANNOUNCEMENT 15 Mar 2010

In March 2010, the government of India announced a change in export taxation.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 17 Mar 2010 | Removal date: 31 Mar 2010

Export tax

 On 15 March 2010, the Ministry of Railways through Addendum No. 8 to Rates Circular No. 36 of 2009 increased the Distance based Charges on freight of iron ore that is to be exported and used in the production of iron and steel.

The Distance based Charge applicable on such iron ore transportation was earlier set at a rate ranging from "Rs. 200 per tonne" to "125% of base freight rate plus Rs. 200 per tonne" depending on the distance of transport. This additional charge has been increased to a rate ranging from "Rs. 500 per tonne" to "125% of base freight rate plus Rs. 500 per tonne".

The measure was valid from 17 March 2010 to 31 March 2010 and the charges were again increased in April 2010 (see related measure).

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AFFECTED PRODUCTS