The Indian government will examine options to cut the recent increase in the iron ore export tax from 30 percent to 50 percent “at the right moment”, a central government tax official said on Tuesday, June 14.
The government has received a number of representations from iron ore bearing states and mining companies seeking a reduction of the export tax to zero and the government will examine the representations “at the right moment”, Central Board of Indirect Taxes and Customs (CBEC) chairman Vivek Johri said.
Mr. Johri said that the government has taken several measures to rein in inflation on the fiscal side, and one of the measures was the imposition of export tax on iron ore, particularly low grade ores.
The CBEC chairman noted that states have said that the imposition of the tax will adversely impact the mining industry. He added, however, that it must be understood that, if export tax is not imposed on low grade ores, then there is the possibility of even high grade ores being passed on for exports with the consignments being declared as low grade.