Levying of 15% export duty on laterite in the Union Budget-2017 is going to make the coffers ring at the Custom House here, as the mineral is being exported only from the Kakinada port in the entire east coast. Until last year, laterite was considered to be a minor mineral and there was no tax on its export. Being a major component for cement industry and considered as the replacement for bauxite with high aluminium content, laterite enjoys significant demand in the domestic and international markets.
Andhra Pradesh stands next to Gujarat in the excavation of the mineral, whereas East Godavari district tops the State with regard to the potential area for mining. At present, laterite mining is going on in an extent of 154.88 hectares in different parts of the district and most of the mines are located in the agency and upland areas.
New tax regime
Three firms exported 3.5 lakh metric tonne of laterite to different global destinations between April 2016 and January 2017 availing the duty-free facility extended by the government. Following the tabling of the new Budget in Parliament, the new tax regime pertaining to imports and exports has come into being and the officials started levying duties as per the budgetary proposals.
“At this point of time, 80,000 metric tonnes of laterite is ready for export at the Kakinada port, which is supposed to be sent to China. With the advent of the new regime, we have levied export duty to the tune of ?1.6 crore on it,” Commissioner of Customs Sheik Khadir Rehman told The Hindu.
Exporters in trouble
The exporters who had clinched deals with their foreign trade partners before the tabling of the Budget were now literally in the soup. The deals were finalised when the mineral was enjoying the duty-free status, but the clearances would now be given at the port only after paying the duty. “They have submitted a memorandum to us seeking exemption of export duty. The final decision, however, is in the hands of the government,” Mr. Rehman said.
The official, however, was confident of collecting a decent sum from the exporters of laterite in the next financial year as the demand has been increasing steadily for the mineral in the international market due to shortage of bauxite.
Source: Thehindu.com
