Idea thrown open by NITI Aayog, who proposed a unified tax regime for the industry, where all royalties, levies, duties and taxes will be subsumed into GST
PANJIM: In a bid to give relief to the iron ore mining industry, reeling under the burden of double taxation, the proposed National Mineral Policy (NMP) may consider having a unified tax regime for the industry.
During the recent meeting of the Dr KV Rao Committee, constituted to review the National Mineral Policy (NMP) 2008, the idea was thrown open by NITI Aayog, who proposed a unified tax regime for the industry, where all royalties, levies, duties and taxes will be subsumed into Goods and Service Tax (GST).
The Aayog was of the view that new NMP should address the financial issues pertaining to the minerals and the mining industry.
“A concern was raised by a representative about the fiscal aspect and request to ensure a unified tax regime for minerals and mining industry where all royalties, levies duties, and taxes will be subsumed in to GST,” the minutes of the meeting, held last month, reads.
Welcoming the suggestion, Rao Committee said, “how to incorporate the GST issue will have to be examined”.
The move will bring in major relief to the mining sector.
In Goa, the mining industry is yet to resume operations for the season as the miners find themselves in a tight spot as they faces the twin problem of a huge tax load and softer iron ore prices in the global market.
Royalty, export duty on iron ore grade above 58Fe content, contribution towards Goa Iron ore Permanent Fund (GIPF), which is been set up as per directions from the Supreme Court in addition to the District Mineral Foundation (DMF), which is set up in both the districts as per the MMDR Act amendment, is making mining business not profitable anymore.
Goa Government has petitioned Union Ministry of Mines to slash the export duty on the 60Fe content grade ore from existing 30 per cent to zero per cent, thus making it competitive for export. State will be also writing to the Union Finance Ministry in this regard.