Tuesday, June 15, 2010

India Proposes Resources Windfall Tax

Thanks to Tom R at Cafe Whispers for this link:

NEW DELHI -- India's Mines Ministry has proposed a windfall tax on non-fuel minerals such as iron ore to claim part of what the government considers high profits earned by the mining sector.

"Our proposal is to levy a windfall tax on domestic sales as well as exports of minerals when their (prices) are substantially higher than the cost of production," Mines Minister B.K. Handique said in an interview.

On the lines of a similar proposal in Australia, the new tax is also meant to raise additional revenue for the government. But unlike in the former, India has a predominantly captive production model where mining leases are mostly given out to producers with their own plants to make finished products such as steel.
India Proposes Windfall Tax on Non-Fuel Minerals

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