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Commerce and Industry Minister Piyush Goyal has mooted the idea of introduction of border adjustment tax and suggested discussions on this with the steel industry with a view to protect the domestic players by providing a level-playing field against increasing imports. He said that this tax is in compliance with the World Trade Organization (WTO). The idea assumes significance as the industry is seeking protection from imports at predatory prices. 

The minister also asked the industry to target 500 million tonnes of steel production in the next 10 years. At present, the industry is eyeing 300 million tonnes of output by 2030. He suggested the industry find newer and better ways on lowering carbon emissions and promoting high productivity and quality steel in the country. He said ‘let’s try and utilise AI (artificial intelligence) to optimise our production, reduce waste, and improve efficiency across the value chain and work towards a circle economy in a bigger way’.

The minister added that the government was not able to extend the benefits of the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme to the sector due to a shortage of funds. He said ‘on the Border Adjustment Tax, electricity duty, iron ore duties, when you are exporting steel, we are loaded with these taxes. Imported steel which comes into India doesn’t have to pay all these taxes. Border Adjustment Tax is a WTO-compliant mechanism, which if all the industries - CII, FICCI, Assocham - everyone take out, we may be in a position to get traction and get it also into the country’.