By Our Correspondent
BHUBANESWAR: RL Mohanty, Managing Partner of MG Mohanty , on Wednesday elected as President of Federation of Indian Mineral Industries (FIMI), replacing Sunil Duggal at the 54th annual general body meeting held at New Delhi, which was attended by Union Coal and Mines Secretary, Anil Kumar Jain.
Mohanty was earlier served as Vice-President of FIMI. Mohanty expressed his happiness and said, he will pursue many pending demands of FIMI with Union and State Government. Mohanty said that the export duty and taxes are now putting many mining firms in trouble.
FIMI President Mohanty said the mining industry faces acute financial difficulty in utilization of the input tax credit availed by the owners on their purchases of input materials, capital goods and services etc. While higher rate of GST is charged on supplies and services whereas GST on mineral and processed mineral is payable @5% and as such it becomes a case of inverted duty structure.Considering the present economic scenario and high effective tax rate on mining in India, it is necessary to have a uniformity in GST rates for sustained growth of mining sector, he said.
In order to conserve natural resource for use in domestic industry, Government has levied 30 Percent Export Duty on iron ore exceeding 58 Percent Fe content. Pellet makers uses iron ore 1.05-1.10 Ton high grade fines for making 1 Ton of Pellets. If fines are directly exported without being converted, Government will get 31.5-33 Percent of export sale as Export Duty resulting in loss of Export Duty of at least approximately Rs.3000 Crore annually.
