AP Asks Jaitley To Reduce GST On Some Services, Items:- State Finance Minister, Yanamala Ramakrishnudu said, the central government has been requested by the Andhra Pradesh Government to consider reducing tax on biogas, cashew kernels and textiles among others, under the new Goods and Services Tax (GST).
Mr. Ramakrishnudu in a letter to the Union Finance Minister, Arun Jaitley said, “As per the rates finalized at the GST Council meeting on May 18 and 19, the tax burden on some of the goods and services is high as compared to the present tax regime.”
He even mentioned in the letter to Jaitley that, “The GST rates should be fixed in such a way that it should not exceed the combined rate of VAT + Central Excise/ Service Tax in order to avoid triggering inflation and hardship to the consumers.”
“Several representations were received by the AP Government from the trade and industry. The representations pointed out the higher tax burden in these categories of goods and services. They have even requested for tempering the burden, by appropriately reducing the GST rates on them.”
Mr. Ramakrishnudu requested that the issue be placed before the GST Council at its meeting tomorrow. The biogas was renewable energy and consumed in rural areas. “The higher tax burden of 12% will discourage biogas production and consumption. Since the tax on LPG is only 5%, it shpuld logically be the same on biogas as well.”
Improvement of tax from 5 to 12% on the fertilizers would increase the cost of farming, directly affecting the farmer’s income. Similarly, 12% GST on tractors will affect farmers, he added.
The Andhra Pradesh’s handicrafts sector that employed 25 lakh people, will be affected by the 7% tax hike on incense sticks. Since regional cinema has a smaller market and cannot compete with Hindi and international cinema, higher tax was unjustified.
Mr Ramakrishnudu said in the letter, “Please consider reducing tax on aforementioned goods and services by placing the issue before the GST Council at its meeting tomorrow.”
SUPRAJA
