Haryana excise and taxation minister Kiran Chaudhry has asked the Union finance minister P Chidambaram for the release of part of the Central Sales Tax (CST) compensation due to the state for 2007-08 to 2010-11.
Against the total claim of Rs 6,639.91 crore made by the state for these years, Haryana had got Rs 4,105.18 crore, she said in a representation to Chidambaram.
The minister pointed out that reduction in the compensation claim had been made primarily on three accounts. Two of these, arbitrary assumption of revenue gain to the states on account of abolition of form 'D', and revenue gain assumed on the account of increase in lower rate of VAT from 4% to 5% were common to all states.
The third issue of concessional rate of 1% allowed by Haryana to Maruti Suzuki India Ltd was applicable only to the state.
"The claim made by Haryana had taken into account the concessional rate allowed to Maruti Suzuki India Ltd. Accordingly, the finance ministry has dealt a double blow to the state by making deduction on this account," Chaudhry said.