PANJI: Following representation by the mining companies, the state govt on Saturday decided to reduce the stamp duty to the extent of 60 per cent for mining lease deeds.
The govt will issue the Indian Stamp (Goa Amendment) Ordinance, 2024 to implement the decision.
The current stamp duty applicable under the Indian Stamp (Goa Amendment) Act is provided under Section 3(a).The amount is arrived at by multiplying environmental clearance (EC) quantity 15 times, and the sum total then multiplied by the period of lease.
“The Ordinance seeks to rationalize the stamp duty applicable on mining lease deed from existing stamp duty rates which is calculated by multiplying the quantity 15 times with that of the period of lease. Now, under the new ordinance, the rates will be arrived at by multiplying EC quantity six times and then multiplying the total with the period of lease,” a senior officer said.
The provision was inserted in the amended act in the year 2012. However, the Mineral (Auction) Rules 2015 came into force from May 20, 2015, which provided for auctioning of all mineral blocks and payment of auction premium by the preferred bidder.
The Rule 11 of Mineral (Auction) Rules 2015 also mandated for payment of upfront payment of an amount equal to 0.5% of value of estimated resources of the concerned mining blocks/lease.
Further, Rule 12 provided for payment of performance security of an amount equal to 0.5% of value of estimated resources of the concerned mining blocks/lease. These payments are in addition to the royalty, district mineral fund (DMF), National mineral exploration trust (NMET) and Goa iron ore permanent fund (GIOPF) and are payable on the extracted minerals.
The lease period before the mining blocks were auctioned was 20 years. After auction the lease period is 50 years. The Mines and Minerals (Development and Regulation) Act, 1957 was amended in the year 2015 to insert a provision that is Section 8(a) which provides that all mining leases shall be granted for a period of 50 years.
The govt has auctioned nine mineral blocks under the auction regime. The preferred bidders in this auction will have to pay an auction premium, upfront as stated above which was not payable in the pre-auction regime.
The preferred bidders made a representation that even after the 2015 amendment, no changes have been carried out with respect to the stamp duty applicable on lease deeds and it is economically unviable to pay such large sums. Hence, they requested govt to revise the applicable stamp duty.
Even as there is reduction in stamp duty, the govt will earn revenue by way of auction premium and upfront payment under the Mineral (Auction) Rules, 2015.
The govt will issue the Indian Stamp (Goa Amendment) Ordinance, 2024 to implement the decision.
The current stamp duty applicable under the Indian Stamp (Goa Amendment) Act is provided under Section 3(a).The amount is arrived at by multiplying environmental clearance (EC) quantity 15 times, and the sum total then multiplied by the period of lease.
“The Ordinance seeks to rationalize the stamp duty applicable on mining lease deed from existing stamp duty rates which is calculated by multiplying the quantity 15 times with that of the period of lease. Now, under the new ordinance, the rates will be arrived at by multiplying EC quantity six times and then multiplying the total with the period of lease,” a senior officer said.
The provision was inserted in the amended act in the year 2012. However, the Mineral (Auction) Rules 2015 came into force from May 20, 2015, which provided for auctioning of all mineral blocks and payment of auction premium by the preferred bidder.
The Rule 11 of Mineral (Auction) Rules 2015 also mandated for payment of upfront payment of an amount equal to 0.5% of value of estimated resources of the concerned mining blocks/lease.
Further, Rule 12 provided for payment of performance security of an amount equal to 0.5% of value of estimated resources of the concerned mining blocks/lease. These payments are in addition to the royalty, district mineral fund (DMF), National mineral exploration trust (NMET) and Goa iron ore permanent fund (GIOPF) and are payable on the extracted minerals.
The lease period before the mining blocks were auctioned was 20 years. After auction the lease period is 50 years. The Mines and Minerals (Development and Regulation) Act, 1957 was amended in the year 2015 to insert a provision that is Section 8(a) which provides that all mining leases shall be granted for a period of 50 years.
The govt has auctioned nine mineral blocks under the auction regime. The preferred bidders in this auction will have to pay an auction premium, upfront as stated above which was not payable in the pre-auction regime.
The preferred bidders made a representation that even after the 2015 amendment, no changes have been carried out with respect to the stamp duty applicable on lease deeds and it is economically unviable to pay such large sums. Hence, they requested govt to revise the applicable stamp duty.
Even as there is reduction in stamp duty, the govt will earn revenue by way of auction premium and upfront payment under the Mineral (Auction) Rules, 2015.