Goa's mining industry upset over hike in duty on iron ore

Goa's mining industry is upset over the union budget hiking export duty on iron ore by 5% when the industry had pleaded to scale it down.
Similarly, the state tourism industry is in a rude shock after service tax was made applicable to hotel accommodation above Rs 1,000 per day and AC restaurants serving liquor.

"We are in for a brickbat. The export duty on iron ore is hiked from 15% to 20%. This move will affect the industry to a large extend," Goa Chamber of Commerce and Industries (GCCI) Vice President Manguirish Pai Raikar told reporters.

"The service tax introduced on the restaurants will also hit the tourism industry, which had actually demanded concessions in taxes," Raikar said.
Narayan Bandekar, Goa's leading mine owner and GCCI's vice president said that the unified duty on iron ore export was unwarranted.
"Goa has a low grade ore which cannot be used for steel industry. There should be exemption from the hike for low grade ores," he said.

Bandekar stated that heavy duty on the high grade ore to discourage exports may be justified but not levying it on low grade ore. Goa has 100-odd mining leases and state exported 45 million tones of iron ore during last financial year.

GCCI President Cesar Menezes told PTI that they will raise the matter with the union ministry demanding roll back of the enhanced export duty and also request them to review the decision to impose service tax on restaurants.