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Govt might review export tax on iron ore
April, 28th 2007
The third week of May might see a review of export tax levied on iron ore by the government as the ministry of mines plans to take up the issue in the next group of minister (GoM) meeting on May 14. 
 
The mining industry had recently protested against the proposed export tax of Rs 300 a tonne. Consequently, the ministry of mines had asked the finance ministry to discuss and review the issue in the GoM meeting on mineral policy, sources said. 
 
The mining and steel industry are at loggerheads over the issue. 
 
The mining industry alleges that this will render iron mining uneconomical making the Indian produce uncompetitive in the international market. 
 
The demand for waiver of duty on export of low-grade iron ore (less than 64 per cent) is being more emphasised. 
 
These taxes are badly affecting our markets and need to be withdrawn instantly, said RK Sharma, secretary general, Federation of Indian Mineral Industries (FIMI). 
 
On the other hand, the steel industry has welcomed the governments decision saying this would help in the much-needed conservation of iron-ore for domestic consumption. 
 
It has also said the operating margins of steel companies was 85 per cent, much more than any other industry.
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