KOLKATA (miningweekly.com) – The Indian mining industry is unimpressed by the government’s recent cuts in corporate tax rate and lofty pronouncement of increasing mineral output by 200% over the next seven years.
The Federation of Indian Mineral Industries (FIMI) said that despite the reduction in corporate tax rate, the Indian mining industry continued to remain burdened with the highest tax rate in the world, with effective rate of 58% in case of existing mines and 54% in case of mines allocated through the auction route.
“The mining sector has a pivotal role to play in the ‘Make in India’ policy of the government. The government aims to increase mineral production by 200% in value terms over the next seven years.
The National Mineral Policy 2019, that has been unveiled with objective of attracting higher private investments in the sector will play an import roles in achieving this target,” Mines Minister Prahlad Joshi said. Last week the government to re-invigorate sluggish industrial growth announced reduction in corporate tax rate from 30% to 22%.
However, FIMI maintained that this was not sufficient to revive growth in the mining sector facing slowdown in production and job losses.
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