Piyush Goyal Proposes Discussion on Carbon Adjustment Tax with Top Steel Industry Leaders

Piyush Goyal Suggests Carbon Tax Discussions with Top Steel Industry Leaders

Commerce and Industry, Minister Piyush Goyal has proposed a discussion regarding carbon adjustment tax with top steel industry leaders on Thursday.

Goyal recommended that the sector explore innovative and improved methods to reduce carbon emissions and enhance productivity and quality steel production within the nation.

"Border Adjustment Tax is a WTO (World Trade Organization) compliant mechanism, which if all the industries - CII, FICCI, Assocham - take out, we may be in a position to get traction and get it also into the country," he said.

What is Carbon Border Adjustment Tax?

A carbon border adjustment tax is imposed on the amount of carbon emissions during the production of the product.

Also, Goyal said that due to a lack of funds, the government cannot extend the benefit from the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme.

"Electricity duty, any additional state levies or taxes that you are not getting remitted, which are not being charged in other countries can be adjusted through a border adjustment tax. So let 4-5 us sit down and take this dialogue forward," Goyal said.

Steel Industries to Notify about Unfair Trade Practices

Goyal also requested that the steel industries notify the government about any unjust trade practices by other nations, enabling India to respond with its counteractions.

Goyal also urged to consume steel made within the country as in Korea and Japan.

Moreover, India has not entered into any Free Trade Agreement (FTA) without the opinion from the steel industry India consistently enforces strict rules of origin so that domestic businesses are not discriminated against in any way.

Previously, in July, the European Union (EU) proposed that India could create its own system rather than contributing to the European Union's carbon tax.

Goyal said is in discussion with the European Union regarding the tax or Carbon Border Adjustment Mechanism (CBAM).