The mines ministry seeks windfall tax to curb illegal iron ore mining
In a move to curb illegal mining, the Mines ministry has asked the finance ministry to consider imposing a windfall tax on iron ore producers.
“We have proposed to the finance ministry imposition of windfall tax on sales of iron ore... Beyond a reasonable limit (of iron ore prices), miners are making undue profit. This is adding to the dimensions of illegal mining,” Mines Minister B K Handique said.
Handique had last week reminded Finance Minister Pranab Mukherjee of an earlier Proposal from his ministry for such a levy.
Such a tax, if imposed, would be an additional source of revenue for the government from mining, he said.
At present, the government taxes iron ore exports and also levies ad valorem royalty on the mineral. Asked if such a move would only be restricted to iron ore, a senior mines ministry official said: “At present, illegal mining of iron ore is a concern, so, as of now, yes. But let the detailed proposal be made.”