PANAJI/MARGAO
Demanding immediate resumption of iron ore mining activities in the State, the apex trade bodies- Goa Mineral Ore Exporter’s Association (GMOEA) and the Goa Mining Association (GMA) on Tuesday urged the State government to rationalize the stamp duty to ensure growth and sustainability in the sector, which is shut since February 2018.
The members of GMOEA and GMA jointly met the Chief Minister Pramod Sawant urging immediate resumption of mining activities as far as the e-auctioned nine mineral blocks are concerned.
“This resumption is slated to play a pivotal role in boosting the state's economic growth, with positive ripple effects on ancillary industries such as truck transport, barges, shops, and more,” the Associations said in a joint statement issued.
The Chief Minister later told the media that the government believes in ease of doing business, saying the government will not mind giving time frame to the lease holders to pay the stamp duty charge over a period of time instead of one time payment of the duty.
In the memorandum, which has suggested that Stamp duty be rationalized suitably, the Association said its members who have successfully secured leases would be glad to be associated in the discussions as and when called by the government.
The industry associations voiced a pressing concern over stamp duty provisions related to the nine blocks successfully auctioned recently in two phases.
GMOEA general secretary Glenn Kalavampara said that considering the challenges in tenor, higher acquisition cost and ease of doing business, it is hoped that such fees to be charged be realistic and fair.
“The existing stamp duty provisions, enacted in November 2013 and December 2014, predate the introduction of the auction regime in January 2015. The stamp duty calculations meant previously for 20-year period are now being applied for 50-year period, posing a significant challenge to the viability and sustainability of mining operations in the state,” the stakeholders said.
They said that these stamp duty charges were originally implemented as an interim measure to help the state navigate economic challenges that were prevalent and relevant at that time, which now have become disproportionate and are out of sync with similar stamp duty charges in other mineralized states across the country.
“As a suggestion to this, a rationalization of stamp duty to ensure growth and sustainability of the mining sector in Goa has been requested to the Chief Minister. Such an amendment is seen as crucial to addressing the current challenges and establishing a regulatory framework for the mining sector that promotes and facilitates ease of doing business in Goa,” they said.
The Associations were of the opinion that the mining reforms suggested by industry associations will help propel socio-economic upliftment and employment opportunities in the state, thus helping to fulfil the larger vision of Swayampurna Goa.
