Mines closure caused customs duty loss in Odisha

Impacted by mines closure in the state, customs duty collection in April-December period this year in Odisha has declined to Rs 1,353.76 crore from Rs 2,306.81 crore in the same period in the previous fiscal.
The central excise revenue, however, in the same period registered a growth of 51.52 per cent, while services tax revenue posted an expansion of 11 per cent.
Overall revenue (central excise, customs and service tax) in the nine-month period 5,900.98 crore, up is 4.67 per cent from Rs 5,637.37 crore in the same period last year.
"The main reason for negative growth in customs duty collection is because of less export of iron ore from the ports in Odisha due to closure of mines. The shortfall on account of export is to the tune of Rs 700 crore up to December 2014," said S K Panda, Chief Commissioner, Central Excise, Customs and Service Tax, Bhubaneswar Zone.

While customs duty collection from mining sector was Rs 850 crore in the previous year, the amount this time by December, 2014 was Rs 150 crore.
"The growth of customs up to December 2014 is -41.31 per cent," Panda said adding while the customs duty collection up to December 2014 is Rs 1353.76 crore, it was Rs 2306.81 crore up to December in last fiscal.
Stating that steps are being taken to fill up the gap by raising revenue collection from service taxes, he said the total revenue realisation this financial year up to December is Rs 5,900.98 crore. Therefore, the Bhubaneswar Zone has achieved 58.08 per cent of its target till December, 2014.

"Overall growth of revenue upto December in all three heads (central excise, customs and service tax) is 4.67 per cent. Total collection by December 2014 is Rs 5900.98 crore as against Rs 5637.37 crore by December of last fiscal, he said.