Govt mulls over imposing Mineral Rent Resources Tax

Following the recommendation of State Government of Odisha, the government is considering to levying Mineral Resource Rent Tax (MRRT) on iron ore on account of super normal profits being made by mining companies.

The Minister of Mines, Dinsha Patel informed Parliament that the Government is of the view that the provisions of the National and State Mineral Funds, District Mineral Foundation payments, provision of revenues to be raised through competitive bidding as proposed in the Mines and Minerals (Development and Regulation) (MMDR) Bill, 2011, can be used for the benefit of the mining areas and the local people displaced by the mining activities, and therefore will be an effective substitute for MRRT.

The MMDR Bill, 2011 was introduced in the Lok Sabha on December 12, 2011, which was then referred to the Standing Committee on Coal and Steel (Standing Committee) on January 5, 2012.

"The Government will move an official amendment(s) to the Bill after considering the recommendations of the Committee," Dinsha Patel said in a written reply to a question in Rajya Sabha on Monday.

Dion Global Solutions Ltd.

Story first published: Tuesday, August 27, 2013, 12:31 [IST]
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