Chief Minister Naveen Patnaik on Tuesday urged Union Finance Minister Arun Jaitley to take immediate decision for compensation of Central Sales Tax (CST) loss to States for the years from 2013-14 to 2016-17.
“No decision has been taken regarding compensation of CST loss to States for the years 2013-14 to 2016-17. I would, therefore, request that the Union Government take immediate decision for compensation of CST loss to States for the years 2013-14 to 2016-17,” Patnaik wrote on Tuesday in a letter addressed to Jaitley citing that the States are facing financial constraint due to a slowdown in the economy and the loss of revenue on account of reduction in rate of CST during the years 2013-14 to 2016-17 has further impacted the financial position.
Drawing attention of the Union Finance Minister to the recommendation of the Empowered Committee of State Finance Ministers in the meeting held in Bhubaneswar on January 28 and 29 in 2013 vis-à-vis reduction of CST rate from 4 per cent to 2 per cent to States, Patnaik said, “The Central Government was required to give 100 per cent CST compensation to States up to the year 2010-11, 75% CST compensation for the year 2011-12 and 50% compensation for the year 2012-13. In the said meeting, it was also decided to review payment of full CST compensation for the year 2013-14 and 2014-15 in case GST is not implemented during the year 2013-14. Accordingly, the Union Government has been releasing the compensation for CST loss to the States up to the year 2012-13.”
Patnaik further informed the Union Finance Minister that Odisha legislative Assembly has ratified the 122nd Constitution Amendment Bill, 2014 paving the way for rolling out of Goods and Services Tax (GST) in the country.