Finance Minister Pradip Kumar Amat on Wednesday urged the Centre to release the balance CST loss amount of Rs3,255.38 crore to the State well before implementation of the proposed Goods and Services Tax (GST) in the country.
“After reduction in the Central Sales Tax, the State Government suffered a total amount of Rs4720.21 crore between 2007-08 and 2013-14. So far, the State has received Rs1464.83 crore. The balance amount of Rs3255.38 crore should be released before implementation of the GST,” Amat demanded at the State Finance Ministers’ Empowerment Committee meeting held in New Delhi on Wednesday. Amat said the proposed GST, when implemented, would certainly effect transparency in the tax system and help transportation of goods between States. Besides, it would help in the growth of economy and industry sectors, he said. However, the Finance Minister opined that the mining rich States like Odisha, which are being affected due mining-related pollution, would gain little.
He suggested that an action plan be prepared on the basis of GST Council recommendations and mining-rich States be empowered to collect additional nontax cess. Besides, Amat suggested that the States be allowed to impose additional tax over GST on tobacco and tobacco products in order to help them discourage use of tobacco.