A whopping 4700 Crore is the loss estimated per year for the state government of Andhra Pradesh if GST (Goods & Service Tax) comes into force, said state finance minister Yanamala Ramakrishnnudu. Despite the fact that AP would lose badly with GST, Yanamala said that TDP has supported the bill considering the larger interests of the country. "The Telugu Desam (TDP) government has always supported taxation reforms and we supported the GST Bill in the larger interest of the country," Yanamala told media on Thursday.
Recalling that TDP had supported the Value-Added Tax (VAT) system earlier, Yanamala chided Congress for causing obstacles in the passing of the Constitution Amendment bill and delaying the bill for 26 months.
Since AP would be losing an enormous 23,500 Crore in five years, Yanamala sought special compensation to AP given that the state is already mired in neck-deep financial woes. "It's Centre's responsibility to bride the gap as the state is already financially crunch," said Yanamala.
With GST, the tax on Goods is expected to come down. However, it may increase the tax on services and food grains.