This story is from July 9, 2007

Withdraw duty on iron ore exports: Miners

PTI / Jul 9, 2007, 00:00 IST

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Miners demanded that the duty on iron ore exports be rolled back, saying that it could result in revenue loss of Rs 4,554 crores if exports slumped by 30%.

Withdraw duty on iron ore exports: Miners

NEW DELHI: Miners on Sunday demanded that the duty on iron ore exports be rolled back, saying that it could result in revenue loss of Rs 4,554 crores if exports slumped by 30%.
"The iron ore export duty has since been reduced to Rs 50 per tonne on fines of 62% and below only. In this context, we feel the export duty has achieved none of its objectives," Federation of Indian Mineral Industries (FIMI) president DK Sahni said.
He said there could be an estimated revenue loss of Rs 4,554 crores in case of 30% reduction in exports and a revenue loss of Rs 2,642 crores in case exports dipped by 20%.
"Imposition of export duty will roll back and throttle all the initiatives taken by the mining industry. In fact, ore exporters are losing between Rs 200 to Rs 300 per tonne owing to rupee appreciation," FIMI secretary general RK Sharma said.

FIMI's president elect Rahul Baldota argued that the current system of computing the mineral royalty on ad valorem basis is unreasonable. He sought its abolition and suggested that government instead introduce a 'fixed price' method to calculate the royalty.
Besides royalty, mineral-rich states have imposed an additional burden on mining industry by levying land tax and peripheral development tax, Sahni pointed out that Jharkhand has levied land tax at 5% of commercial value.
Similarly Rajasthan has levied mineral-wise land tax at rates varying from Rs 10 to Rs 100 per square metre, Sharma said. "Such taxes are not legally in line with the provisions of MMDR Act and may deserve reconsideration."
Low spending on explorations, delays in clearing applications and difference in fiscal policies pursued by the Centre and states were some of the key impediments hindering FDI in the domestic mining sector.

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