Iron ore miners are contesting the levy of a forest development tax by the forest department in Karnataka, but the levy has been incredibly beneficial for the exchequer’s coffers.
Selling Karnataka’s forest produce like grass, amla, bark, lac, honey, silk cocoons and bamboo to industries attracts a 12 per cent forest development tax or FDT. Forest officials also levy the tax on the mining of iron ore from reserve forest areas, which happens in Bellary, Chitradurga and Tumkur districts of Karnataka.
