New Delhi, November 7 (Language) Expressing serious concern over the decision of the European Union (EU) to impose carbon tax on imports from certain sectors like steel, Commerce and Industry Minister Piyush Goyal has assured the domestic industry that India will not impose carbon tax on imports from certain sectors like steel. Will not accept the tax and will take steps to protect producers and exporters.
Speaking at a steel industry event here on Tuesday, Goyal said India has already raised its concerns over carbon tax in the European Union and the World Trade Organization (WTO).
The Carbon Border Adjustment Mechanism (CBAM) or carbon tax (a type of import duty) will come into effect from January 1, 2026. But domestic companies involved in seven carbon intensive sectors like steel, cement, fertilizer, aluminum and hydrocarbon products have to share carbon emissions data with the EU from October 1 this year.
Goyal said, “I assure you that we are extremely concerned about CBAM. We are taking this very seriously with WTO. We will fight to make it fair for Indian producers and exporters. There will be no negligence regarding CBAM.
The minister said the world will have to consider this tax and India will engage other countries to address this ‘very serious’ concern.
“We will always look for innovative solutions but I can assure you that the country will not accept unfair taxes or duties being imposed on the Indian steel or aluminum industry or any other industry,” he said.
He said that there is no need to panic about this, we will find a solution which will be beneficial for us in the future.
He said the EU will have to give us ‘common but differentiated responsibility’ on this issue because India is a developing economy.
According to a report by research institute Global Trade Research Initiative (GTRI), CBAM will translate into a 20 to 35 percent tax on select imports into the EU from January 1, 2026.
Language Ajay Ajay