The state government is likely to request the Centre to do away with the 10 per cent export duty on iron ore at least for two years in order to facilitate exports. The request will be made by the state authorities to the Centre during a meeting to be convened by Union Finance Minister Arun Jaitley in New Delhi on Saturday.
Sources said that the state government will explain to the Union Finance Minister the mining scenario in the state, how resumption of activity has been hampered due to various factors and the crisis being faced by the industry due to the falling prices of ore in the international market.
During a meeting held on Wednesday at the Secretariat, it was decided by the state government to examine the taxation part regarding the taxations recently imposed by it on the mining industry.
The state government had recently introduced several taxations including processing fee of Rs 20 per tonne of ore, Rs one lakh per raising contract, Rs 10,000 for registration of barges, Rs 5,000 for registration of (mining) trucks besides commercial tax on the exports.
The Goa Mineral Ore Exporters Association (GMOEA), a body representing the iron ore industry in the state, has petitioned the state government to do away with the recently introduced taxations, which have been hampering the resumption of mining activity.
The miners and ore exporters have also urged the central government to withdraw the export duty on low grade iron ore stating that the withdrawal of the export duty would help India become competitive in the global market and earn foreign exchange from the commodity that has very little demand in the country. “Despite efforts by the state government including renewal of mining leases and completion of all other formalities, leaseholders have been facing various hurdles in resumption of the activity,” sources said.