The union government is considering a revision in the ad valorem
royalty charged on the sale price of iron ore. However the government has no
plans to impose a special tax like ‘mineral resource rent tax’ as frequently
demanded by the Odisha Chief Minister Mr.Naveen Pattnaik, said the joint
secretary of the union mines ministry Arun Kumar.
“We have enhanced the ad valorem royalty on iron ore 3 years back
and the process for another revision has started. So there is no need of a tax
like mineral resource rent tax†Mr.Kumar said here on Wednesday.
In 2009, the royalty rates of minerals had shifted from tonnage
basis system to ad-valerem basis calculated on the sale price of the mineral
and in the case of iron ore of all grades (lumps and fines) the advalerem
royalty was fixed at 10% of the sale price.
It may be noted that, the Orissa chief minister
has sought imposition of Mineral Resource Rent Tax on iron ore at 50% of the
surplus rent and accrue it to the mineral-bearing states.
Reported by Tapan Moharana
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