Odisha Reiterates Its Demand For Green Tax On Mining

BHUBANESWAR: Odisha Finance Minister Pradeep Amat on Tuesday reiterated the demand for allowing the mineral-bearing states to levy green tax taking into account the adverse environmental impact from mining activities.

He, however, said Odisha is in favor of Goods and Service Tax (GST), which will reform the taxation system in the country.

“Under GST the destination principle applies and the mineral producing State where pollution may be localized does not get any part of the revenue. It is only the consuming State that gets the tax revenue whereas the pollution is suffered by the citizens of the producing State,” said Amat.

Amat was addressing the empowered group of state finance ministers on Goods & Service Tax (GST) at New Delhi.

“Therefore, taking into consideration the adverse environmental impact, we propose for the levy of an additional non-rebatablecess under GST, which the State may be empowered to levy subject to the suitable framing of guidelines after consultation with the proposed GST council,” he added.

He also urged to allow the states to impose a tax on tobacco and tobacco products.

“We urge that “Tobacco and Tobacco products” should be included in Entry 54 of the State List so as to enable the States to levy tax on it in addition to GST,” said the Minister.

He also requested the Centre to compensate it for central sales tax (CST) loss.

The Odisha government has claimed Rs.2755.36 crore towards CST Compensation for the loss on account of CST reduction from 2007-08 to 2011-12 but received Rs. 2201.40 crore for the said period.