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India: Industry for removal of duty on 60 grade ore

The mining industry in Goa, which is reeling from a global meltdown in iron ore prices, has approached the Union government to bring down the export duty on iron ore of upto 60 grade from the existing 30% to 0%. Presently, the export duty on iron ore above 58 grade is 30%.

The Goa Mineral Ore Exporters Association (GMOEA), the main trading body of mine owners in the state, has written to the Union government for reduction in export duty on iron ore. Speaking to TOI, association president Ambar Timblo said that the association has been in constant dialogue with the central government on the matter of export duty.

“The acuteness of the problem is now even more severe in a collapsing commodity market, and a huge tax and statutory burden on the sector is making the short run financially difficult and the medium-long run uncertain, to say the least,” he said

Timblo said, “If export duty is not corrected to be market related and fiscal costs are not rationalised to the times, it could be a long winter and if clarity in the sector is not visible, we may see longer winters ahead.”

Sources said that most of the iron ore exported from Goa is below 60 grade and currently, there are no buyers for this type of iron ore in the international market. Sources said that even other iron ore exporting countries are giving huge discounts on 60 grade iron ore prices, which has become business competitive.

April 2014, Union finance minister Arun Jaitley had to reduce the export duty on iron ore below 58 grade from 30% to 10% and not lamps. Goa mining industries had made a representation to finance minister to remove this ambiguity. In February 2016, the Union finance minister exempted export duty on iron ore below 58 grade.

Source: TNN & Hellenic Shipping News

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