PANJIM: With international prices of low-grade iron ore dropping to a 10-year low, Goa Mineral Ore Exporters Association (GMOEA) has again demanded a withdrawal of the export duty along with revisiting the issue of double taxation.
In a statement issued Tuesday, GMOEA secretary Glenn Kalavampara said that considering that the price for low-grade ore is around $30 a tonne, there are few reasons for the industry to be in any comfort zone.
“Goan iron ores have negligible demand domestically yet have to pay higher taxes proportionally to its grade. The export duty levied has to be withdrawn totally for all low grade iron ores from Goa,” he said.
Besides export duty, there are also other taxes which had been levied on the industry, resulting in double taxation, this too needs a revisit, Kalavampara added.
He pointed out that the ore prices have tumbled to rates prior to the boom period. “Presently, far from any boom, the mining industry stares at prices which have dropped to a 10-year low, signifying the end of good days for the industry,” Kalavampara said.
GMOEA explains the industry is left to cough up taxes which have not only been retained since the boom but even increased. “It is envisaged that the taxes on exports of low grade iron ores would range about 60% for 58% Fe grade. The part relaxation of export duty for below Fe 58% fines a few months back would also not be comforting at this juncture. Further, even value addition would suffer as there are no incentives,” he said.
Despite this, there are still certain majors from Australia and Brazil, who look forward to increasing production despite cooling of economies in Asia, he added.
