Imposes 5% Export Duty On Iron ore Pellets
Considering the increase in the average speed of packing machines, the Government has revised the capacity of production and consequently increased the duty applicable to pan masala and tobacco products including gutka, chewing tobacco, unmanufactured tobacco and filter khaini packed in pouches with the aid of packaging machines etc. under the compounded levy scheme. Pan masala, pan masala containing tobacco (gutkha), chewing tobacco, unmanufactured tobacco and filter khaini packed in pouches with the aid of packaging machines are leviable to excise duty on the basis of the capacity of production which is determined based on the average speed of packing machines of pouches of various retail sale prices. The duty rate on the said goods was last revised in the Budget 2012-13.Beside above, considering the domestic requirement of iron ore pellets, the Government has decided to impose an export duty of 5% on iron ore pellets.
Iron ore fines and lumps are leviable to an export duty of 30%. Iron ore pellets are however exempt from export duty. In 2012-13, exports of iron ore pellets were negligible. However, in April-November 2013, exports of iron ore pellets have risen sharply, causing an apprehension about shortage of iron ore in the country. Iron ore is a critical raw material required for production of steel.
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