Goa mining belt village panchayats seek export duty abolition

Village panchayat bodies in the mining belt of Goa asked Union Finance Minister Arun Jaitley today to abolish the 30 per cent export duty on iron ore.
The demand came after iron ore prices in the international market plummeted to a five-year low, raising concerns over the viability of iron ore mining in Goa.
In a letter to Union Finance Minister Arun Jaitley, Kirlapale village head (sarpanch) Deepak Pawaskar highlighted hardships faced by people during the two-year iron ore ban and expressed concerns on the survival of the people that depend on mining industry.
He requested Jaitley to get rid of export duty on iron ore and make mining viable for companies providing them jobs.

Sanvordem village sarpanch Shashikant Naik also made a similar demand wrote to the finance minister that more than four lakh mining dependents from Goa are waiting for "acchey din".
He urged the finance minister to do away with export duty on iron ore because people from the mining belt feel that high export duty would deter miners from operating their business and directly affect people dependent on the mining industry.

He said that iron ore mining companies in Goa bear a whole gamut of taxes in the form of 30 per cent export duty, 15 per cent royalty and 10 per cent Goa Permanent Fund besides numerous cess as well as value added tax (VAT) amounting to almost 60 per cent of the revenue.

With taxes contributing a major portion of sales value, it is feared that a number of mines may not be revived because the cost of production would exceed the market price, he said.
North Goa Tipper Truckers' Association president Suresh Desai said in his letter that if iron ore mining is not feasible in the state, it would mean no jobs to more than 5,000 truck owners registered with them and many others who depend on the mining industry for jobs.
South Goa Progressive Truck Owners' Association president Prakash Raut Dessai said in his letter that since prices in the international market have dropped, mining is bound to become a loss making venture for companies and that high export duty would only add to their woes.

He expressed anxiety that all their savings have been exhausted during the two-year ban on iron ore mining.
He urged the Finance Minister to find a solution and abolish export duty to make mining feasible which would provide them with job security from companies.