Karnataka chief minister B.S. Yeddyurappa on Monday held discussions with Finance Department officials here on implications on the state with the introduction of Goods and Services Tax and decided to take a call on the new indirect tax regime once it takes final shape.
Speaking to reporters after the meeting, Mr Yeddyurappa said non-Congress state governments, including DMK-led Tamil Nadu, have rejected the move outright, and discussions on the proposal are still on.
"Once the proposal gets final shape, we will take a view," he said. The meeting discussed the impact of GST on the state's revenue collection and the chief minister was briefed on the issue.
The chief minister, who held a review meeting concerning the departments of Finance and Forest, issued strict instructions to the Commercial Taxes department to plug leaks in revenue collection by acting firmly against “illegal activities”.
Forest department officials were told to take stern action against illegal transportation of iron ore for export, failing which disciplinary move would be initiated against them.
Mr Yeddyurappa denied suggestions that iron ore was now being transported illegally by railway wagons following crackdown on lorries, terming it as being far-fetched and just a fiction of imagination.
The state government would not care losing revenue it would get when iron ore was exported, as it is keen to preserve natural wealth valued at rupees tens of thousands of crores for value addition, he said.
Mr Yeddyurappa said the government has decided to purchase 1000 mw to ease the shortage, adding, 500 mw started flowing to the state from Sunday night itself. He would again convene a meeting to review the power scenario shortly.