Odisha seeks justifiable share in divisible pool of funds

By Express News Service

BHUBANESWAR: The Odisha authorities on Friday, September 17, 2021, demanded that the divisible pool of funds be shared by the Centre and states needs to be elevated in order that states like Odisha get a justifiable share.Attending the primary bodily assembly of the GST Council in 20 months at Lucknow, Finance Minister Niranjan Pujari is reported to have expressed concern over the rise in cess or surcharge imposed by the Centre. He mentioned this has not benefited the states in any method as they don’t get any share from them. On the opposite hand, the income goes to the Centre, he said.

The Finance Minister prompt {that a} mechanism needs to be labored out in order that the states are additionally benefited. Sources mentioned Odisha authorities’s view on bringing petrol and diesel below the purview of GST was that the State collects much less income from petrol and diesel in comparison with the Centre. 

Official sources mentioned the Centre collects Rs 32.9 from one litre of petrol whereas the State authorities collects Rs 21.4 per litre by imposing 40 per cent (computer) value-added tax (VAT). Similarly, the Centre collects Rs 31.8 from a litre of diesel whereas the State authorities will get Rs 18.9 by imposing 28 computer VAT. The State authorities raises between Rs 5,500 to Rs 6,000 crore from VAT on petrol and diesel yearly.