A longstanding demand of the State for waiver of income tax from District Mineral Foundations (DMFs) has finally been met as the Union Government recently approved of the proposal and published a gazette in this regard.
Chief Minister Naveen Patnaik had placed the demand before the Centre many times. Accordingly, Rajya Sabha member Dr Amar Patnaik raised the issue in Parliament time and again.
“It is culmination of an effort initiated nearly a year ago,” said Dr Patnaik.
He said the concession would increase the space to carry out vital socioeconomic and environmental development works in the mining areas with DMF funds.
“While Odisha supplies all types of minerals to other States and the country benefits immensely from this, the people of Odisha have to deal with the associated hazards of mining. The DMFs were created to address these problems and provide a healing touch to these displaced and affected people of our State,” said Patnaik.
Now, the Union Government has announced that income tax would be waived for all DMFs with retrospective effect. It has revenue savings in excess of a thousand crores and more on the unutilised portions of the DMF funds in our Sate and further recurring income tax liability in excess of 150 crores per year on interest income from these unutilised money kept in banks, he said.