Commerce and Industry Minister Suggests Border Adjustment Tax for Steel Industry

Commerce and Industry Minister Piyush Goyal proposed the introduction of a Border Adjustment Tax to protect domestic players in the steel industry. He emphasized the tax’s compliance with the World Trade Organisation and suggested using AI to optimize production. Discussion with industry leaders and the EU’s Carbon Border Adjustment Mechanism were also highlighted.

Commerce and Industry Minister Piyush Goyal on Thursday proposed the introduction of a Border Adjustment Tax aimed at protecting domestic steel players. He emphasized that this tax complies with World Trade Organisation standards.

Goyal's proposal carries weight as the steel industry seeks protection from predatory import prices. The minister also urged the steel industry to target 500 million tonnes of production in the next decade, and to use AI to optimize production and enhance efficiency.

The tax would be applied to imports, in addition to customs duty, to ensure a level playing field for domestic industries. Goyal also confirmed that discussions are ongoing with the EU regarding the Carbon Border Adjustment Mechanism, which is set to affect carbon-intensive sectors by 2026.

(With inputs from agencies.)