BHUBANESWAR: The Odisha government has reiterated its demand to allow mineral-bearing states to levy additional tax on miners.
“According to provisions of Goods and Services Tax (GST), mineral-bearing states like Odisha would not get much revenue. It is the consuming states, which will benefit under the ‘destination principle’ norm,” said finance minister Pradip Kumar Amat shortly after the meeting of empowered committee of finance ministers in New Delhi on Wednesday.
“Since the mineral-bearing states will only consume pollution, we urged the Centre to develop a mechanism to allow us to levy additional tax on miners,” he added.
Official sources GST will create a unified market by ending multiple levies of taxes by the Centre and the states. The NDA government is likely to implement it from 2016-17.
To generate additional revenue, Amat once again raised the issue of empowering the states to levy tax on tobacco and its products. He also demanded an increase in voting weight of the states vis-a-vis the Centre in the GST council.
The state also claimed Rs 4720.21 crore as compensation towards CST reduction. “Although the Centre had granted Rs 1303.08 crores towards CST loss till 2013-14, it recently released Rs 161 crore for 2014-15. The Union finance minister assured to allocate the remaining amount in a phased manner,” said Amat.
The Centre brought down the CST rate from 4% to 3% in April 2007, and further reduced it to 2% in June 2008.
Source: Times of India