Orissa seeks new tax on iron ore profits
September 3rd, 2011 - 10:05 pm ICT by IANS
Bhubaneswar, Sep 3 (IANS) Orissa Chief Minister Naveen Patnaik has sought a new tax on iron ore profits, saying the merchant mining companies were making “super normal profit” beyond any measure of reasonable returns.
Patnaik also asked the central government to revise royalty rates on the steel making commodities which currently stands at 10 percent, so that the additional royalty will enable the mineral rich states to invest in infrastructure and jobs.
“The super normal profits being made are evident from the audited operational profits of 80 percent, which is unheard of in any other industry,” Patnaik said in a letter to Prime Minister Manmohan Singh.
“In spite of the state being the owner of these resources, the mines owners are benefiting beyond any measure of reasonable returns,” he said in the letter sent Thursday but made available to press only Saturday.
“There is an immediate need for revising the royalty on minerals. Besides, there is a strong case for imposing a mineral resource tax on iron ore,” he said.
“The Australian government has announced that a mineral resource rent tax of 30 percent on iron ore which will be applicable from July 1, 2012. On the same lines, a mineral resource rent tax should be levied on iron ore, to be charged at 50 percent of the surplus rent and should accrue to the states,” Patnaik said.
Orissa has about 35 percent of India?s total iron ore reserves.
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- Iron ore export eating away resources: Justice Shah - Sep 17, 2011
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- Orissa allows six iron ore mines to resume operations - Jan 24, 2011
- India's iron ore export to China has colonial trade pattern: Official - Nov 18, 2011
- Hike in iron ore export duty irks Goa mining industry - Jan 04, 2012
- Orissa holds up permission to operate 23 mines - Jan 22, 2011
- Regulate iron ore prices, say Orissa steel producers - May 24, 2011
- Strike hits mining in Chhattisgarh - Feb 28, 2012
- JSW Steel scales down production to 30 percent - Sep 26, 2011
- Odisha, Jharkhand to check iron ore smuggling - Feb 09, 2012
- '25 mn tonnes illegal ore extracted in five years in Goa' - Nov 23, 2011
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