AP Wants Centre to Compensate for GST Loss

The estimated loss of revenue due the implementation of GST in the state is about Rs 4,000 crore.

Published: 11th September 2014 06:04 AM  |   Last Updated: 11th September 2014 09:09 AM   |  A+A-

HYDERABAD: While welcoming the tax reforms proposed by the 14th Finance Commission, the Andhra Pradesh government demanded that the loss of revenue due to implementation of Goods & Service Tax (GST) should be fully compensated by the Union government.  The estimated loss of revenue due the implementation of GST in the state is about Rs 4,000 crore.

Andhra Pradesh finance minister Yanamala Ramakrishnudu attended the meeting held by the Empowered Committee of State Finance Ministers with the 14th Finance Commission at Vigyan Bhavan in New Delhi on Wednesday.

The finance minister demanded that the compensation mechanism should be such that there should be an independent body to release the compensation and it should not leave any scope for whims and fancies of the Union government. If possible, it should be made part of the constitutional provisions, he said.

While demanding the Centre to keep petroleum products outside the purview of the GST, as the loss of revenue would be considerable, the minister, however, said that in case they are exempted, permanent production-linked compensation to the state should be provided and the successive Finance Commissions should be asked to make recommendations thereof.

He said as a measure of building confidence among the states in promise of the Union government to compensate CST loss, the Centre should release the amount of loss of revenue due to phasing out of CST. The compensation should be released in full for the entire period and such loss to the state of AP is Rs 7,200 crore, he said.

He urged the Finance Commission to recommend to the Centre to provide sufficient financial resources to relieve the fiscal stress on AP.

Stay up to date on all the latest Andhra Pradesh news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp