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Naveen meets Jaitley, seeks compensation for CST loss

PTI 02 Jun 2014, 19:33:42 PM IST
New Delhi: Odisha Chief Minister Naveen Patnaik today met Finance Minister Arun Jaitley here and sought full compensation to the state for the revenue loss due to phase-out of Central Sales Tax (CST) and demanded revision of royalty rates on major minerals.

Patnaik urged Jaitley to “either fully compensate the state for the CST loss or restore the CST rate to original four per cent till implementation of Goods and Services Tax”. 

Alleging the Centre has failed to fulfill its commitment since 2010-11 on compensating the state for phase-out of CST, Patnaik said that during the same fiscal, the state received Rs 256 crore only towards compensation as against the loss assessment of Rs 664 crore and no compensation has been received since then.

“I also urged the FM to revise rates of royalty on minerals to 15 per cent from 10 per cent. The FM assured me that he will expedite all these matters,” he told reporters after meeting Jaitley.