Export duty hike to hit Goa mining industry
The iron ore mining industry in Goa is wary of the 10 per cent hike in export duty imposed by the Ministry of Commerce and said this taxation would further "cripple the trade".
Panaji: The iron ore mining industry in Goa is wary of the 10 per cent hike in export duty imposed by the Ministry of Commerce and said this taxation would further "cripple the trade".
On December 30, the Ministry had announced a hike in export duty from 20 per cent to 30 per cent on all types of iron ore grades.
However, the industry feels that such a hike was unwarranted, especially, since it is currently going through tumultuous times.
Goa Mineral Ore Exporters Association (GMOEA), a trade body of the iron ore exporters, has expressed fears that the industry would cave in with the additional burden that was being forced on them.
"It would be difficult to salvage the situation at a later date. Hence, it is hoped that immediate correction is put in place to rectify the anomaly," GMOEA secretary Glen Kalavampara told reporters.
There are also apprehensions that the hike in the export duty would plummet the collection of royalty by state governments.
"The export duty is inversely proportionate to the state`s royalty generation. It will certainly impact the state coffers," a senior Goa Mines and Geology Department official said, requesting anonymity.
The royalty is decided on the pit`s mouth value of the product, expert said adding that if the export duty is
hiked, the value would come down cutting into the royalty rates.
He said that the state cannot represent against the hike at this juncture, as the Code of Conduct has come into force owing to March 3 Goa Legislative Assembly elections.
Goa, which is the biggest exporter of iron ore in the country, has projected 30 per cent reduction in the exports this year after several mines faced stringent regulations.