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Finance Minister Prafulla
Chandra Ghadei told this paper that the State Government
has suggested that the GST should be implemented from
2011-12 after all processes are completed.
Ghadei today attended the
meeting of all state finance ministers convened by Union
Finance Minister Pranab Kumar Mukherjee in Delhi.
Ghadei said that the
Centre and the state governments will have to pass bills
in Parliament and the respective assemblies on GST.
Besides, there should be
a public debate on the new tax. This will take another
one and a half years, he said. The Centre will also have
to announce compensation to the state governments
because of the introduction of the new tax. There is
difference between the Centre and the states in this
regard.
While the Centre is of
the opinion that the states will not lose any revenue
because of the implementation of the GST, the state
governments hold a different view. Though the loss to be
incurred by the states in the initial years is yet to be
properly assessed, Orissa is likely to lose about Rs
2,000 crore per annum. Ghadei, however, did not guess
the amount of loss. He demanded an independent agency to
assess loss of revenue to the states. The Centre is,
however, yet to fully compensate the loss to Orissa
following the reduction of CST rate from 4 to 2 per
cent. The loss was around Rs 400 to 500 crore per annum.
However, the Centre had not paid any compensation for
2009-10.
Source :
Express
Buzz,
India,
dated
11/11/2009
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