The Karnataka government is reportedly considering a hike in iron ore duty as part of its efforts to boost revenue collections. According to CNBC-TV18, a draft proposal to increase the duty has already been circulated, and a decision is likely to be taken soon.
Key Points:
- Karnataka government aims to mop up around ₹10,000 crore from the proposed increase in iron ore duty this year.
- Karnataka contributes nearly 35% of India’s total iron ore output, making this decision crucial for the mining and steel industries.
- The Supreme Court has previously approved states to collect mining taxes retrospectively from 2005, further supporting the government’s move.
The decision is expected to address fiscal concerns and support infrastructure development in the state. However, the proposed increase may add to costs for industries dependent on iron ore, particularly steel producers.
