Panaji | March 16, 2016: In a major relief for the mining industry, the Goa government today abolished welfare cess on the ore on which royalty has already been paid.

"In 2000, the state government enacted the Goa Rural Improvement and Welfare Cess Act with the objective of providing socio-economic benefits and improved infrastructure to the areas affected by mining and movement of ore," Chief Minister Laxmikant Parsekar today said in his Budget speech in the Legislative Assembly.

"A cess is being levied and collected which is spent on meeting the objectives of the act," he said.

"Now that the district mineral foundation has been established with similar objectives as envisaged in Cess Act, 2000, and in order not to cause doubt regarding dual levy for the same purpose and also to provide some relief to mining firms, I propose to exempt the mineral ores where royalty is paid to the state government from the payment of cess under this act," Parsekar said.

The CM also announced a proposal to exempt trucks and barges used by the mining industry from the taxes paid to the state transport department and the Captain of Ports department, respectively, as long as they were lying idle.

If these trucks or barges are used (after mining business picks up once again) this exemption will be withdrawn and they will have to pay dues on pro-rata basis.

(Source: http://www.business-standard.com/)