Odisha demands levy of green tax on mining

Odisha Thursday reiterated its demand for levy of green tax on mining at the state finance ministers meeting in New Delhi.

Finance Minister Pradip Kumar Amat said mineral bearing states like Odisha will not benefit from the proposed Goods and Services Tax (GST) unless constitutional provisions were made to compensate such states.

Odisha made the demand at the state finance ministers meeting chaired by Union Finance Minister Arun Jaitley.

"We are investing for their (mine) infrastructure and water. We are also bearing the brunt of pollution. Implementation of a destination-based GST will deprive the state like Odisha from getting any part of the tax revenue," Amat told IANS over phone.

He said states have been making losses due to phase out of central sales tax (CST). Citing the case of his own state, Amat said Odisha has over Rs.2,300 crore outstanding CST dues pending with the Centre.

One of the most comprehensive economic reforms in India, the GST seeks to create a uniform indirect tax structure across the country by merging all central and state taxes. But, it has been hanging fire for over a decade.