“With the existing (rate) of export duty, the iron ore export is not profitable. With 30 per cent export duty, the total taxation on the industry is around 80 per cent. It will be difficult to sustain (the exports) under such high taxation,” Goa Mineral Ore Exporters Association (GMOEA) chief executive officer S Sridhar told media persons.
He said that the Central government, in its recent budget, was due to lower the duty but has failed to provide any relief.
Sridhar also pointed that though the suspension on mining has been lifted by the State government and Supreme Court, and though Environment Clearances were granted, all the clearances are not in place. “But that would entirely depend on the (level of) taxation. Even if all approvals are granted then the crucial issue such as taxes is pending,” he added.
Earlier, another senior GMOEA member said that with falling international prices, the biggest steel market, China, has taken a serious decision to safeguard their producers by giving them relaxation in taxation. “A similar measures needs to be initiated by the Central government to protect Goan iron ore producers, who have already lost their market in the international market,” the official said.
GMOEA has in the past petitioned the State and Central government with their demand for relaxation in export duty. After the Centre failed to provide relief, the State has assured the mining players to take up the matter before the Centre, seeking exemption for low grade ore from export duty and lowering the duty for higher grade ore.
The mining industry has ceased operations since September 2012, following temporary suspension imposed by the State. The matter is currently pending before the Apex Court.
