Panaji | Apr 26, 2015: The Goa mineral ore exporters association (GMOEA) on Saturday said that the commencement of mining activities in the state will be 'far from reality' unless higher taxes, such as 30% export duty and other taxes, are reduced. Chances that the Union finance ministry will reduce the duty are remote, said a source in the state government.
There are around 17 different taxes imposed by the state and central government on the mining industry.
Chief minister Laxmikant Parsekar, who held two rounds of talks with finance minister Arun Jaitley over the reduction in export duty, said that the intention of the union government behind the increase in export duty is to encourage the 'Make in India' concept. "The export duty hasn't been increased to increase government revenue, but to encourage the local steel industry," he said.
Glen Kalavampara, secretary, GMOEA, told STOI that "Any corrections, if any, have to be done now rather than later".
Before mining had been suspended, the market price for '58% Fe' iron ore was around $80. Today, it is around $30. The bulk of Goan iron ore is '58% Fe' and if lower than 58%, the prices for lower grades would be even lower, an officer of the directorate of mines and geology, said.
GMOEA said that the major taxes for the Centre includes the 30% export duty, and for the state, includes 15% royalty, which is the "highest in the world", district mineral foundation (equivalent portion of royalty) and Goa permanent fund.
Parsekar had reduced the registration fee to 5%, which was equivalent to stamp duty.
Kalavampara said, "With nearly 80% as taxes, how can any industry operate in this kind of scenario?" He also said that further logistics suppliers have to realize that the cost of operations would have to reduce.
"Goan ore have never had domestic requirements in the past, and, at best, were only used to blend with higher grades by international buyers. This was the only niche market," Kalavampara said.
Kalavampara also said that presently the value of minerals imported by the country outstrips exports by eight times, widening the trade deficit. Exports of low grades also need to be given due attention. Only when there is some kind of development can sustainable development come in, he added.
(Source: http://timesofindia.indiatimes.com/)