Commerce Secy expected to chair discussion on EU's carbon tax tomorrow

New Delhi, May 3 (KNN) A joint discussion including top government officials and industry leaders regarding the impact of European Union's move to impose carbon tax is likely to be held on 4 May, 2023.

The meeting would be chaired by Commerce Secretary Sunil Barthwal and top officials of different ministries, including those from finance, commerce and steel will attend, reported ET.

The meeting comes amid the carbon border adjustment mechanism (CBAM) being implemented by the European Union.

The EU is introducing CBAM from October 1 this year. The new mechanism will translate into a 20-35 per cent tax on select imports into the EU starting January 1, 2026. 

India's iron, steel and aluminium exports to European Union countries will face extra scrutiny under the mechanism, as per a report of economic think tank GTRI.

From January 1, 2026, the EU will start collecting carbon tax on each consignment of steel, aluminium, cement, fertilizer, hydrogen and electricity.   (KNN Bureau)