Odisha Sun Times Bureau
Bhubaneswar, Sep 20:
Odisha Chief Minister Naveen Patnaik today urged upon Union Finance Minister Arun Jaitley to take immediate decision for compensation of Central Sales Tax (CST) loss to states for the years 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 today 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 have 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 28th and 29th January in 2013 vis-à-vis reduction of CST rate from 4% to 2% to states Patnaik said: “The Central government was required to give 100% CST compensation to states up to the year 2010-11, 75% CST compensation for the year 2011-12 and 50% CST 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.