Rajasthan Mining Stakeholders Demand Mineral Tax To Curb Raw Exports

(MENAFN- KNN India) Jaipur, Mar 24 (KNN) Mining stakeholders in Rajasthan have urged the state government to introduce a mineral tax of Rs 700 per tonne on raw mineral exports.

This move aims to address concerns over unchecked exports of feldspar and quartz without value addition, which has negatively impacted the industry and resulted in job losses.

Surendra Singh Rajpurohit, coordinator of the Rajasthan Minor Mineral Association, emphasised the need for such a tax, citing a Supreme Court judgment as a reference.

He stated,“We have submitted proposals for the state's financial policy, focusing on investment promotion and revenue enhancement under the 'Rajasthan First' initiative.”

At present, Rajasthan mines and exports various major and minor minerals, including those classified as critical for national security, aviation, and medical sectors.

The Union government's Critical Minerals Policy advocates for a Zero Waste Mining strategy, ensuring that all essential minerals are recovered using advanced technology.

As of February 20, minerals such as feldspar, quartz, mica, and baryte have been reclassified as major minerals to encourage scientific mining practices.

A mine owner highlighted the difficulties faced by small-scale miners, stating,“Expensive segregation plants are unaffordable, leading to the continued export of unprocessed minerals.

Annually, Rajasthan exports lakhs of tonnes of raw minerals, generating minimal revenue beyond basic royalty, causing severe financial distress to feldspar-based MSMEs.” The unchecked extraction also results in significant environmental damage, which current royalty rates fail to mitigate.

To curb raw mineral exports, stakeholders have proposed toll checkpoints on inter-state roads and stringent penalties for tax evasion.

A senior official assured that the proposal is under review, aligning with Rajasthan's mining policy, which aims to boost the sector's GDP contribution from 3.4 per cent to 5 per cent by FY30, and up to 8 per cent by FY47.

(KNN Bureau)

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