The Orissa government has decided to withdraw 2 percent concession in Central Sales Tax (CST) given to the small scale industries (SSIs) in the state. A proposal moved by the state finance department in this regard was approved in the state cabinet meeting today. The cabinet also approved another proposal for extension of exemption of entry tax and VAT on building materials used in the reconstruction work taken up by donor agencies up to the end of December 2009. Briefing the media after the meeting, finance secretary Jugal Kishore Mohapatra said, to promote growth and sale of finished products of the SSIs outside the state, two percent concession in CST was given to these units. This concession was given at a time when the general CST was 4 percent. But, with the CST reduced to 2 percent from June, 2008, the concession has lost its relevance. Even as the SSIs were not getting the concession practically, they were at a dis-advantage to avail the input tax credit as the Orissa Value Added Tax (Amendment) Act stated that a unit will not be eligible for input tax credit if was enjoying any tax concession. So to enable the SSIs to avail the benefit of input tax credit on purchases inside the state, the cabinet approved the withdrawal of the concession. The state finance department will come out with the required notification within a month. Similarly, to enable the donor agencies to avail the benefit of tax exemptions allowed on building materials used in reconstruction works in the flood affected areas of the state, the cabinet approved a proposal to extend the exemption till 31 December 2009. A proposal of the women and child welfare department to frame a state specific policy for combating trafficking in women and children for commercial and s*xual exploitation including labour exploitation got the nod of the state cabinet. For effective implementation of the policy, five integrated anti-human trafficking units are proposed to come up in the state.
Committees headed by the district collectors will work for rehabilitation of the women and children released from the exploitation. The proposal for the formation of Orissa Water Commission (OWC) to ensure accountability of the water supply bodies to the municipal corporations, raising the financial power of the Orissa State Housing Board (OSHB) to execute projects up to Rs 3 crore and proposal of KZK Developers to end the legal dispute pertaining to the Banaja apartments received the nod of the state cabinet. Besides, raising the premium of the government land in 60 mouzas in and around Bhubaneswar to the bench marking rate notified by the revenue department, amendment of the Orissa Civil Service rules to provide for one third reservation for women in class-1 job and direct recruitment of deputy superintendent of police to the one third of every recruitment batch (not exceeding 15 per annum) received the approval of the state cabinet.
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