Mining ban impacts VAT collection by 12%
PTI, PANAJI | 18 June 2013 22:53 IST
The Goa government today said spending by people in the mining belt of the state has plummeted considerably, triggering a slump in collection of Value Added Tax (VAT).
“The spending has come down in the mining belt. It has affected the collection of VAT. This was predicted when the mining activity was stopped in the state,” state Chief Secretary B Vijayan told reporters in Panaji.
He said that VAT collection has gone down by Rs 250 crore for the last financial year (2012-13).
“The tax collection projection was Rs 2,250 crore but the actual collection was only Rs 2,000 crore,” Vijayan said adding that the slump was 12 percent.
When asked whether the mining belt is going through recession, Vijayan refused to attribute the phenomenon only to the Goa mining belt.
“The world is going through recession since 2008,” he said.
Vijayan said the state government has introduced various schemes for people affected by mining halt so that the spending capacity in this belt increases.
Parrikar-led government has started allotting monthly compensation for truck owners and the ones who are left jobless due to mining closure.
Entry Of 35 Thousand Corers Means Tax Free Goa For 5 Years And No Mining Affected People in Goa.