With falling mining revenue Odisha has started searching new revenue sources in the sector. Through levy of 15 percent stamp duty on mining leases the mineral rich state expects to mop up additional revenue of about Rs 1000 crore annually from the sector .
The Odisha government moved the Indian Stamp (Odisha amendment) Bill 2013 in the assembly on Wednesday. The finalization of the Bill will allow the government to charge the stamp duty on miners including those operating their leases under deemed extension.“The Bill seeks to impose stamp duty of 15 percent on mining companies. We hope to collect close to Rs 1000 crore additional revenueâ€Â, said minister for revenue & disaster management S. N. Patra in the assembly.
In February the state’s mining revenue collection was only Rs.380.12 crore against the target of Rs 470 crore, a shortfall of 19%. Also the collection drops about 16.84% against the January collection of 457 crore. Similarly, during the April-February period Odisha’s mining collection was Rs 4682.77 crore against the target of Rs 5034 crore, a shortfall of 7%.
Odisha Finance Minister Prasanna Acharya had announced levy of stamp duty while presenting the Budget for 2013-14 after Cabinet nod. In the absence of an amendment to the prevailing statute, the state government was losing out on revenue as mine owners were being allowed to continue their operations under 'deemed renewal' for years with the state government sitting over the renewal process.
The policy would allow operations of leases under 'deemed renewal' obviated the need to execute afresh lease agreement wherein miners were required to pay stamp duty. As many as 329 applications of mine lessees were pending for renewal. Fifty (50) lease holders were continuing operations under 'deemed extension'.
– Tapan Moharana
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