India may change iron ore export tax on value basis
Union finance ministry is believed to have favored computing export tax on iron ore on the basis of value rather than quantity, a move that could help garner higher revenue in view of the galloping prices of the mineral.
The views coincide with that of the steel ministry, which has been pushing for a 15% ad valorem duty on iron ore to offset any possible revenue loss to the exchequer if the government cuts down excise on steel and allow its duty-free import to check rising prices.
Official sources said that the views from the two ministries were believed to have been voiced during inter ministerial meeting held here earlier this week to explore options for checking steel prices.
The ministries of commerce and mines are understood to be opposed to the move and the matter has been referred to Prime Minister Dr Manmohan Singh, who is expected to take the issue to the Cabinet Committee on Prices early next week before the government announces steps to check steel prices that have risen by up to 49% in the last one year.
The finance ministry is of the opinion that export duty on iron ore would not jeopardize interests of the mining industry, as despite imposition of export duty on iron ore last year, there is no reduction in the volume of exports. The finance ministry while agreeing to Mr Paswan's contention that fiscal measures need to be taken believes that they will have to be revenue neutral.
« Back
|