PANJIM: With mining companies delaying resumption of iron ore extraction owing to various taxes imposed by the Central and State governments, the Mines Secretary has decided to approach the Finance department to decide on scrapping or lowering of the taxes.
A meeting chaired by Principal Secretary (Mines) Dr Sharad Chawan was held to decide on the various taxation issues highlighted by the mining companies.
Goa government had recently introduced several taxations including processing fee of Rs 20 per tonne, Rs 1 lakh registration fee per raising contract, Rs 10,000 for registration of barges, Rs 5,000 for registration of trucks besides commercial tax on the exports. The mine owners have to also pay 10 percent of the export duty to the Central government.
Goa Mineral Ore Exporters Association (GMOEA) a body representing the iron ore industry had petitioned State government to do away with the State introduced taxations which were hampering the resumption of the industry. The body had also approached Prime Minister Narendra Modi for scrapping of export duty on low grade ore.
“Several demands of GMOEA were discussed. It is for the finance department to take the call whether to recall the taxations imposed on the industry,” a senior official said adding that the Mines Secretary will now approach the Finance department with the proposal of the mining firms.
Interestingly, both the portfolios- Mining and Finance are with Chief Minister Laxmikant Parsekar.
“The exporters had pointed out that they don’t get input credit for exports of the ore due to commercial tax. They wanted government to revise the taxes,” official added.
Meanwhile, on the slashing of export duty, the Union Mines Ministry has written to the Union Finance Ministry to propose scrapping a 10 percent export duty.
The iron ore mining activities in the State are at halt since September 2012. While the only mining firm Sesa Goa has begun mining operation, it has not commenced in full swing. Total 61 mining leases are granted permission to extract ore by the government so far.
