In order to promote sale the surplus rice in the state, the state government has decided to waive off the 2% Central Sale tax (CST) on interstate rice trade.

In exercise of the powers conferred by sub section (5) of section 8 of the Central Sales Tax Act, 1956 (74 of 1956), the state government has decided to waive off the 2% CST on interstate rice trade.

State government thinks it to be satisfactory in the public interest and has given concession of 2% sale tax on sale of rice to a registered dealer in course of interstate trade or commerce by a dealer, having his place of business in the state of Odisha, shall be exempted to the conditions of production of declaration in Form C prescribed under the Central Sales Tax (registration and turnover) rules, 1957 obtained from the purchasing dealer”, read a state finance department notification.

Rice Miller said that it is a good opportunity to boost the trade of surplus rice in a transparent manner.

Shyamlal Agarwal, President, All Odisha Rice Miller Association.(AORMA) said that the neighbouring states like West Bengal, Chhattisgarh, Jharkhand and Bihar have already allowed free interstate rice trade and by this opportunity the rice miller of Odisha which is having a good amount of surplus rice can sale their surplus rice free of taxes to the registered dealers through fair means.

State’s rice consumption is 2.2 million tons in 2013-14 but the state government has procured a little above 2.8 million tonne of rice.

Due to previous ongoing tax structure in the state, surplus produced goods cannot be sent to other state making the state to procure more than its consumption capacity. Inadequate storage further enhanced their problems.

The state government, in Kharif 2014, aims to procure 8.46 million tonne of rice with a yield of 2,350 kg per hectare.

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