The Odisha government has demanded compensation against Central Sales Tax (CST) loss at a pre-budget consultation meeting with the state finance ministers convened by the Union finance minister in New Delhi .
“In a single year, Odisha has lost about Rs 800 crore on account of CST rate reduction to two per cent,” said state finance minister, Prasanna Acharya. He also pitched for earmarking more funds for the weavers and fishermen in the upcoming Union Budget.
Earlier chief minister Naveen Patnaik in a letter to Prime Minister Manmohan Singh had opposed the Centre’s decision for not paying CST compensation for 2011-12. Patnaik had urged the Centre to continue compensating for CST loss without any deduction till Goods and Services tax (GST) is not introduced. The minister also reiterated the demand for Mineral Resource Rent Tax at the rate of 50 per cent on the supernormal profits earned by miners.