Union Minister Piyush Goyal.
Credit: PTI File Photo
India is “extremely concerned” about the imposition of ‘carbon tax’ by the European Union (EU) on imports of certain goods like steel, cement and aluminium and is taking up the issue with the World Trade Organisation (WTO), Commerce and Industry Minister Piyush Goyal said on Tuesday.
“We are taking it up with the WTO very very seriously. We shall try to work and fight to get a fair deal for Indian producers and exporters,” Goyal said at an event organised by the Indian Steel Association.
The European Union recently came out with a new regulation called 'Carbon Border Adjustment Mechanism' that seeks to impose additional tax on import of carbon-intensive goods. The new tax regime, scheduled to come into effect from January 1, 2026, will initially apply to steel, aluminium, cement, fertiliser, hydrogen and electricity and proposed to be expanded to all imports into the EU in due course.
It is likely to hit India’s export of iron, iron ore pellets, steel and aluminium to the EU that accounts for more than one-fourth of India’s total exports of these products.
Goyal said India has flagged its concern with the EU over the new tax system.
“We will always find innovative solutions but I can assure you that India will not be accepting unfair taxes,” he added.