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regular-article-logo Wednesday, 06 November 2024

Odisha Congress leader Srikant Jena letter to PM Modi: Withdraw ‘back-stabbing’ tax plea

Jena also wrote to chief minister Mohan Charan Majhi, requesting him to address the issue for the Odisha's greater interest

Subhashish Mohanty Bhubaneswar Published 17.09.24, 12:21 PM
Srikant Jena

Srikant Jena Sourced by the Telegraph

Senior Odisha Congress leader Srikant Jena wrote to Prime Minister Narendra Modi seeking the withdrawal of the review petition filed by the Centre over the state's authority on levying cess and taxes on mineral-bearing land and minerals.

Jena also wrote to chief minister Mohan Charan Majhi, requesting him to address the issue for the Odisha's greater interest.

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In his letter to Modi, Jena said, “The Union Government has filed a petition before the Supreme Court to review its landmark judgement of 25th July 2024 and 14th August 2024. This review petition is against Odisha's interest. The review petition filed by the Union Government before the Supreme Court on the issue of mining cess and taxes, is as good as back-stabbing the interest of Odisha and it benefits a few industrial houses and mining operators. In the larger interest of the state of Odisha the review petition should be withdrawn.”

Odisha is the leading mineral producer in the country, accounting for nearly half of India's total mineral production. Jena said that the Supreme Court rulings allow states to levy taxes and cess on mineral-bearing lands and minerals.

“After the Supreme Court Judgement, Odisha stands to reclaim approximately 1.5 lakh crore in retrospective dues since 2005 which state can start collecting from 1st April 2026 over a period of 12 years and additionally state can generate approximately 50,000 crore annually by putting cess and taxes on future mining operations. This would be an economic boost for a state struggling with poverty and backwardness,” he said.

Jena said despite its significant contribution to the nation's mineral wealth, Odisha remains abundant mineral one of the poorest states and highest in migration of labourers. “This review petition filed by the Union Government, undermines the rights of the states. Withdrawing the review petition would allow Odisha to fully utilise its resources for its own development and the welfare of its people,” he said.

In its review petition, the Centre stated that any collection by the respective state governments in the name of tax on mineral-bearing land would create havoc in the fiscal sector of the country. It will impact the economic integration of the country and also encourage state governments to levy taxes on mineral-bearing land based on the value of minerals produced.

The Centre argued that the respective It is to say that the respective state governments would levy high or variable taxes, thereby leading to non-operation of mines.

Jena said: “On one hand, the right and authority of Odishato levy cess and taxes on mineral-bearing lands and minerals, amounting to approximately 1.5 lakh crore in retrospective dues since 2005 and approximately 50,000 crore annually by putting cess and taxes on future mining operations, is being snatched away. On the other hand, what is being offered in the overhyped Subhadra Yojana is 27 per day to each beneficiary.”

Prime Minister Narendra Modi will visit Odisha and launch the Subhadra scheme for women on Tuesday.

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