Mineral Resource Rent Tax on Mining in India
October 23rd 2011 16:09
The CM of Orissa in India is in favor to impose Mineral Resource Tax on mining companies. In the National Development Meeting in New Delhi on 23rd Oct 2011, he said that this tax will help the mineral rich states to raise funds for the development.
He blamed Indian Bureau of Mines for determining low prices of the ore and low royalty rates. He also informed that the mining companies operating in the state are making supernormal profits which exceed even the approved annual plan size of the state.
In Australia, the government has already announced Mineral Resource Rent Tax of thirty percent which will be applicable on ores from July 1st 2012. On this same procedure the CM is favoring to impose Mineral resource rent tax on the ore mines by the mining companies in India. He recommends that the tax should be levied on iron ore and to be charged for fifty percent and should be provided to the states for the development. He has also demanded the revision of royalty and fixing of the royalty as per the price of the ores.
India plans to approach WTO against the issue of imposing 500% panel duties by US on imports of Hot Rolled Steel. The earlier duty was around 18% and the fresh imposition will make the Indian producers out of US markets. Before, India tried to solve the issue bilaterally with US and no solution came out, India planned to approach World Trade Organization.
From past three years because of levies on steel exports from India, the producers and exporters from India are not able to exports from past three years to US. The anti dumping duty of over 20% will make the Indian producers and exporters of Hot Rolled Steel uncompetitive in the United States markets and resulting in complete out of market.
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