The mining bill for sure will collect tax from the lucrative business of Iron Ore and Coal, but also can result in some economical changes. The mining sector is a great boom in entire world, which is efficient in creating a huge opportunity the resource sector and also creating more wealth along with more jobs.
The mining sector also helped in raising the middle class and that in turn is a huge opportunity for the economy to develop and flourish. The increase in purchase power of the middle class has a great impact on the country’s growth rate. This clearly indicated that during the world economical crisis, we will be more stable and on right path.
The new mining bill make mining costlier in India and the mining industry can change is face to locate themselves out of India. The mining bill was passed by the cabinet last month makes it mandatory for the mining companies to share their huge profits with the local peoples of the region where the mining work is carried out. Other than Mining Bill, Government has already imposed taxes and Cess on mining and export which the mining companies are already paying.
The Mining Bill was introduced, to reduce the exploitation of the tribal land and people along with generating separate royalties which will be utilized for development of local communities where the mining is being done.
The royalty on Ore is currently 10% of the sales price and it will be mandatory to pay 12% Forest development tax on the basic price of the Ore. Further, the mining companies also have to pay 2.5% cess on the custom and excise duty which will be used for developing the capacity of Indian Bureau of Mines.