Goa government's proposal to levy land replenishment cum green environment charges on mining firms state has received flak from the premier industrial body in the coastal state.
Goa Chamber of Commerce and Industry (GCCI) in its post-budget memorandum to State Chief minister Digamber Kamat have termed the proposal to levy such a tax as "harsh".
"The proposal to levy a charge of Rs 30 per tonne of mining reject on the grounds that they (rejects) have caused colossal damage to environment is harsh," said Cesar Menezes, president, GCCI, in the memorandum, which was submitted to the Chief minister this week.
"With the steep increase in Central government royalty and given the fact that the Goan ore is of low grade and does not fetch a good price in the international market, this additional charge will put the industry under more strain," Menezes said.
Goa budget presented by Kamat on July 24, who is also holding the finance portfolio, had projected revenue collection of Rs 375 crore per year due to this initiative.
Kamat in his budget speech had said "these rejects of mining have done colossal damage to the environment, road infrastructure and to the people's health."
The GCCI, which has an influential presence of mine owners as its members, has said that mining leases are granted by the central government and state government cannot levy any charges like the one proposed.
"The central government fixes rates of royalties and other charges and the state government only collects it," the chamber has said.
Menezes said that even if it is presumed that the proposed levy is legal, it must be remembered that any levy by the way of charge should be used for the purpose for which it is collected and should not be applied elsewhere.
