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The imposition of further taxes/ cess/ levies, if any, as permitted by the ruling, will further impact the economics of mining operations possibly making it unviable with its natural consequences
The Goa Chamber of Commerce and Industries (GCCI) has demanded an urgent review of the mineral taxation ruling by the Supreme Court, stating that the increased cost of mining will inevitably lead to higher prices for essential commodities, including steel, power and cement.
The Supreme Court last month allowed states to collect past dues on royalty on minerals bearing land from the Centre and mining companies from April 1, 2005 onwards.
“The imposition of further taxes/ cess/ levies, if any, as permitted by the ruling, will further impact the economics of mining operations possibly making it unviable with its natural consequences.
Additionally, the increased cost of mining will inevitably lead to higher prices for essential commodities e.g., steel, power, cement, etc. further fuelling inflation and consequential impact on the nation’s economy,” GCCI said in a statement.
The possible impact would be a change of goalpost particularly when the auction regime is in vogue post enactment of MMDR (Amendment) Act in 2015, while creating an uncertainty in the mineral taxation regime of the country, it said.
It may adversely impact the downstream industries and lead to mining cost push inflation affecting the entire economy.
While GCCI respects the apex court’s decision, it believes that the decision could have devastating consequences in future, for the mining industry in the country as a whole including Goa which is yet to recover from the aftereffects of mining ban in 2018.
“The iron ore mining in Goa has just begun and/or looking forward to resume its operations after a long gap of 6 years – it is in everybody’s knowledge that after the change of mining regulations in 2015, the mining companies are required to pay a substantial amount in the form of auction premium for winning the bid, besides other statutory dues like Royalty, DMF/NMET contributions, etc,” it said.
The imposition of further taxes/ cess/ levies, if any, as permitted by the ruling, will further impact the economics of mining operations possibly making it unviable with its natural consequences.
“We are compelled to request the authorities to review the verdict in light of the submissions from the industry to find a balanced solution that ensures revenue generation while ensuring the survival of the mining sector,” GCCI President Shrinivas Dempo said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 22 2024 | 12:17 PM IS
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