6-month wait would have been better: Eatala
Expressing apprehensions over implementation of GST, Telangana State Finance Minister Eatala Rajender on Friday said that a comprehensive debate has not taken place despite repeated pleas of the state governments. \"It should have waited for four to six months and then implemented it,\" he said.
Telangana loss pegged at 2,500 cr
New Delhi: Expressing apprehensions over implementation of GST, Telangana State Finance Minister Eatala Rajender on Friday said that a comprehensive debate has not taken place despite repeated pleas of the state governments. "It should have waited for four to six months and then implemented it," he said.
The Minister, who was here to attend the GST roll out on Friday midnight, was speaking to the media. "We have been pleading with the Centre to sort out several issues before implementing the GST regime.
We are not against it. But we want several knots to be sorted out. In the last 40 days, we have discussed several issues threadbare. The state governments have been pleading with the Centre for reduction of taxation on 145 items.
Telangana State Government had sought reduction of taxation on 35 items. There was not much response from the Council and the Union Finance Minister. Even welfare programmes like Mission Bhagiratha are brought under 18 per cent taxation which would lead to cost escalation," he said.
Referring to the beedi industry, Eatala said both Telangana and Chhattisgarh would be adversely affected in this regard. Any taxation on par with cigarettes on beedis would lead to large-scale unemployment. "Handloom industry and granite industry would be affected severely.
In all, the revenue loss for the State Government would be Rs 2,500 crore. It is not yet clear how this would be restored or offset. As for tax revenue outflow, it is going to be Rs 8,500 crore from the State but its share would be pegged at Rs 6,000 crore," he added.
However, he assured, the State Government would be alive to the problem and would take it up with the Centre from time to time to sort out the issues in favour of the industry and businesses.