New Delhi: Close on the heels of slashing duties on petroleum products, Government today (Aug 20, 2004) cut customs duty on steel products, sacrificing Rs 305 crores in the current year, as part of fiscal measures to contain inflation, now inching towards eight per cent.

The import duty on non-alloy steel other than seconds and defectives was reduced by five per cent from 10 per cent and on ships for breaking from 15 per cent to 5 per cent.

The duty on melting scraps for iron and steel other than stainless steel, which at present attract five per cent, has been abolished.

The notification on the duty cuts was tabled in Parliament today.

Today's decision comes two days after the Government slashed customs and excise duties on petrol, diesel, kerosene and LPG, which is estimated to cost Rs 2,500 crore in the remaining part of the current year.

However, the notification made it clear that additional duty of customs (countervailing duty) would now be payable on import of such ships.

After a meeting of the Cabinet Committee on Prices yesterday, Finance Minister P Chidamabaram said more fiscal measures would be taken for reining in inflation.