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State losing revenue on coal while Assam gains

 

DIMAPUR | March 01, 2015: Following the cabinet decision, the Geology and Mining department had in March last year, issued a notification with regard to its revised coal mining policy and rules with regard to licensing of coal operations in the state. In this regard, the department had issued 17 coal mining licenses to companies/individual with Rs.290 per ton levied from licensees while non-license holders levied with Rs.450 per ton.

 

According to informed sources, the department had literally given amply opportunity even for non-license holders in view of expressed inability to check illegal coal mining that has spread across various parts of the state. An interesting and important aspect of the government coal mining policy and rule stipulated that all coal extracted were to be stocked in three stockyards/depots in order to streamline levying of VAT etc. However, for unknown reasons, till date, the state government was yet to enforce and implement establishment of the stockyards/deports which could have earned the state added revenue.

 

In the absence of such stocking areas, on an average 700 to 800 trucks from various areas pass through Naginimora, Tiru, Namtola, Laxijan, Geleki, Amguri, Mariani, Merapani and Uriamghat check points to Assam. How much ‘fee’ or ‘tax’ is collected from these points is largely left to speculation but according to sources, the amount is “quite substantial”.

 

However, the main problem is being faced by coal-laden trucks passing through Assam, mainly Jorhat where a syndicate of central excise team levies hefty fees on each truck. Each truck is made to pay royalty, central tax, excise and VAT. Another practise was to ask each of the trucks to deposit a hefty amount as Assam sales tax to be refunded after the coal has been certified as having been delivered at a stockyard in Assam.

 

It may also be recalled, that this newspaper had on January this year, revealed how Assam sales tax officials refused to allow trucks laden with coal from Nagaland to pass through as the forest permits issued by the government of Nagaland was deemed as “invalid”. Assam continues to maintain that all resources and minerals extracted along the border with Nagaland as belonging to it. Each truck was asked to deposit Rs.35,000 each for carrying coal in order to obtain the permit for crossing the Srirampur gate.

 

Meghalaya has already stopped further movement of coal through Assam pending further decision on sales tax etc. Coal mining in Nagaland is largely unregulated owing to land and ownership issue which has also acted as impediment for more government control and supervision. Nagaland government has to take up the matter seriously in order to plug all loopholes which are invariably exploited by vested interests since the state faces revenue income constraints.

 

 

(Source: http://www.nagalandpost.com/)