Finance
By: Shree1news, 07 MAY 2021
BHUBANESWAR : Chief Minister Naveen Patnaik on Thursday requested the Centre for exemption of GST on purchase of Covid-19 vaccines and extend financial help to the states from the cess and surcharges to create an equal platform to fight the pandemic.
In a letter to the Union Finance Minister Nirmala Sitharaman, Naveen mentioned that the states have been requested to purchase vaccines from their own resources to cover the 18 to 44 years age group. These purchases appeal to GST, making vaccines expensive for the states. This must be exempted completely. It will reduce the cost for states and facilitate the drive in the direction of universal vaccination, he said.
In a video message to the people on Saturday, the Chief Minister had mentioned that the State government has placed orders for vaccine doses for everyone in the age group of 18 to 44 years. Around two crore people in the age group will benefit from the vaccination drive for which Rs 2,000 crore will be spent.
The State government had placed orders for 10.34 lakh doses of Covaxin from Bharat Biotech and 377 lakh doses of Covishield from Serum Institute of India on Sunday. Whereas Covishield is priced at Rs 300 per dose for state government, Covaxin costs Rs 600 per dose. Covishield will price Rs 1,131 crore and Covaxin Rs 62.04 crore.
The combined purchase cost for the State government involves Rs 1,193.04 crore which is able to attract GST of Rs 59.69 crore at the rate of 5 per cent. The state government will get instant relief of around Rs 60 crore for these purchases if GST is waived.
Arguing for GST exemption, the Chief Minister mentioned it will be significant that the states are supported in order that the entire nation fights as one. Additional resources raised by numerous cess and surcharges on petrol, diesel and liquor, that are completely available to the Centre, must be suitably shared with state governments at this essential juncture. “This will strengthen our fight against the pandemic including the provision of vaccinations, free treatment, undertaking preventive measures and so on,” he said.
Source:A-N
