From Our Special Correspondent
Daijiworld Media Network - Panaji
 
Panaji, Feb 28: Goa’s Mining industry is left red-faced with the Union budget which has hiked the export duty on the iron ore by almost five per cent against their wish to scale it down.
 
Similarly, the state tourism industry is in a rude shock after restaurants were covered under sales tax ambit in the budget.
 
Goa Chamber of Commerce and Industries (GCCI), an apex industrial body having representation of the mining industry, in their pre-budget memorandum had requested with the centre to cut down the export duties which are charged ad voleram.
 
“We are in for a brickbat. The export duty on iron ore is hiked from 15 per cent to 20 per cent. This move will affect the industry to a large extent,” GCCI Vice President Manguirish Pai Raikar told reporters in Panaji after the budget presentation in Delhi.
 
“The service tax introduced on the restaurants will also hit the tourism industry, which had actually demanded concessions in the taxes,” Raikar said.
 
Narayan Bandekar, Goa’s leading mine owner and GCCI’s vice president, said that the unified duty on the 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 the exports can be justified but implying it on the low grade ore is unjustified.
 
Goa has 100-odd mining leases and state exported 45 million metric tones during last financial year. The state has been earning around Rs 700 crore in the form of iron ore exports.
 
GCCI President Cesar Menezes said that they will raise the matter with the union ministry demanding roll back of the enhanced export duty and also request them to review their decision to impose sales tax for restaurants.
 
Menezes, however, welcomed the overall budget, which for the first time recognized the menace of corruption. “There are several good factors that are in the budget including strengthening of the network that will curb spoiling of the food grains,” he said.
 
He said that Goa cannot expect much in the union budget because size of the state is similar to that of any district. “Goa is also developed region and the concentration of the budget is to develop the under developed regions,” he clarified.
 
The union budget has given relief to the Goa’s biggest fertilizer manufacturing unit, Zuari Industries Limited (ZIL). “It’s a welcome sign that fertilizer industry is classified as an infrastructure industry but the budget does not specify what would be the government policy towards the industry,”” Binayak Datta, Vice President (Finance), ZIL, said.