Post News Network
Bhubaneswar, Feb 13: Meltdown in global commodity market has made its obvious impact on the iron ore and steel industry in the state as reflected in the falling commercial tax collection during this financial year.
As per data available with the department, aggregate collection of Central Sales Tax (CST) and Value Added Tax (VAT) from steel sector fell 18 per cent to Rs 152.45 crore during April-December, 2015 from Rs 186.11 crore reported in the same period of last fiscal.
In the iron ore industry, collection from VAT and CST stood at Rs 242.12 crore, down 13.4 per cent from previous fiscal’s collection.
Industry experts opined that despite reopening of iron ore mines, the demand for the ore remains low on the back of subdued performance of steel sector. Similarly, crash in iron ore prices has made it difficult for iron ore players to export the commodity to foreign countries.
Meanwhile, aluminium sector has recorded sound growth in collection in the state despite slowdown in the sector.
As per official data, total VAT and CST collection stood at Rs 123.9 crore in the first nine months of this financial year against Rs 100.97 crore reported in the same period of previous fiscal, showing a growth of 22.70 per cent.
The state government has a target of collecting Rs 16,000 crore of commercial tax during the current financial year. It has already collected Rs 11,143.14 crore during April-January period of this fiscal, which is higher by 9.46 per cent over the same period of previous fiscal year.