Thursday, July 28,
Industry body FICCI today said the imposition of additional burden on the mining and mineral sector under the proposed Mines and Minerals (Development and Regulation) Act would lead India to become the highest taxed country in the sector.
“Indian mining sector is already one of the highly taxed sector globally, with an estimated effective tax rate of around 43 per cent for iron ore, as compared to 35-40 per cent for most of the major mining countries like Brazil, South Africa, Australia, Canada,” FICCI Mining Committee’s Chairman Tuhin Mukherjee said.
In Australia tax on mining currently stands at 39 per cent, in Brazil 35 per cent, in Chile 28 per cent, in Russia 35 per cent and in China, it is 32 per cent.
“In India, the effective tax rate will rise to over 60 per cent in case of coal and 55 per cent in case of iron ore after these new provisions are implemented,” Mukherjee said.
Anand Goel, Joint Managing Director,J indal Steel and Power and a member of the Committee, said that the imposition of 26 per cent profit sharing for coal and 100 per cent royalty sharing will create super rich pockets in the mining areas leading to a huge disparity and dissatisfaction among the rest”.
Sesa Goa Managing Director and Co-Chairman of the Committee P K Mukherjee said that the move might not encourage foreign direct investment to come in the sector, which has not seen much flow since the opening up of the sector in the last decade.
Source: The Economic Times
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