PANAJI: The Goan Mining People’s Front has urged Member of Parliament Shantaram Naik to raise their demand for lower export duty on low grade ore, rationalisation of other taxes and duties in view of reduced current prices and an enhancement of the mining cap to 35 million tonnes per year, during Zero Hour and with concerned central ministries.
The memorandum signed by Suhaas Naik, convenor and Christopher Fonseca, general secretary, AITUC drew the attention of Shantaram to the drop in the price of low grade ore from $120 to $24 per tonne and explained that attempts to restart mining were hampered by low international prices of the commodity.
Highlighting the hardships faced by those dependent on mining, the memorandum stated that, “150,000 (1.5 lakh) people in Goa are directly dependent upon the mining industry for their livelihood. While the mining industry attempts to restart, it is faced with serious challenges from an extremely difficult market situation.”
“The Goan mining industry is faced with large amount of taxes and duties. The industry is taxed at 40% of sale price as against the 0.7 to 7 % for other countries like Brazil, South Africa and Australia which are continually pushing higher and higher tonnages into the global market.”
Low grade iron ore faces a 10% export duty, 10% Goa Mining Permanent fund, 15% royalty, 4.5 % district mineral fund apart from a slew of local taxes. These taxes and duties in the form of royalty, export duty, etc were imposed when the prices were significantly and the industry was earning high rate of profits. Today however, the market- scenario has changed. The high level of taxes have rendered the industry unviable, the memorandum stated.
It also pointed out that the 20 million tonnes interim mining cap imposed by the Supreme Court should be relaxed immediately. “Not only will this provide adequate opportunities to the people of the mining community to earn their rightful livelihood but also help the mining industry to reduce costs and compete with the global mining companies.”
