Why export duty?

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Nihit (Querist)
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28 September 2013 Import duty is levy to control imports for protection of domestic business then why export duty levy required?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 September 2013 Export duties are levied on very few products which are considered essential for the domestic economy.

The objective of export duty in such cases is to ensure that enough supply of such goods is maintained in the domestic market at reasonable prices.

For eg: steel is an essential input for large number of manufacturers. around 30% export duty is levied on steel exports to ensure that steel traders first serve the domestic markets before selling outside India.