TEAM HERALD
PANJIM: State government has urged the Centre to withdraw the export duty on low grade iron ore, which was recently hiked by the Union Cabinet to 30 percent, saying profit margins of mining industry have shrunk due to a steady fall in international prices after the closure of mining operations in 2012.
Chief Minister Manohar Parrikar in a letter to Union Mines Minister Narendra Singh Tomar said that the government is keen that 30 per cent ad valorem export duty on iron ore be withdrawn to help Goan ore to make its way to Chinese markets.
“While iron prices have crashed internationally, making ore exports more difficult, the existing 30 per cent export duty (levied in 2012), has compounded the situation and needs to be rationalised,” Parrikar said in his letter to the Union Ministry earlier this month.
Parrikar, who is also the Mines Minister, suggested that there should be no export duty for iron ore which has up to 52 per cent ferrous content, 10 per cent duty for ore between 52-58 per cent Fe grade, 20 per cent duty for 58-62 per cent Fe grade and flat 30 per cent duty for above 62 Fe grade.
“If (this is) done, then the differential duty structure will help Goa’s mining industry to return to its earlier position (without illegalities) in due course and enable the Union government to generate revenue apart from stopping exports of high grade iron ore,” the chief minister stated.
“It would therefore be in the fitness of things if the export duty is rationalised based on the grade quality of iron ore. I am afraid that in the absence of clear-cut policy framework on export duty structure, the State cannot expect any meaningful resumption of mining operations, even if the mining leases are re-allocated,” Parrikar
has written.
