Yanamala Rama Krishnudu, Minister of Finance and Planning for the State of Andhra Pradesh and also a senior politician from the TDP, has raised concerns over the effectiveness of the GST. Taking digs at the Central Government, the TDP Minister questioned the central government’s strategy as well as succeeding failure in implementation of GST. He also considers Demonetization as the main reason for the two percent dip in India’s GDP.
He expressed his concern over the ineffective and unplanned procedures employed by the government at centre while implementing important schemes or decisions of the scale of GST and Demonetization. He further added that while ordinary people were facing serious cash crunch with the ATMs remaining empty post demonetization.
Fresh from the recent fallout with the Central Government over the special state issue, the TDP while addressing the State Assembly on the subject of GST raised concerns over the various slabs in GST as well as the Centre’s intention of covering the losses incurred by the States due to GST implementation. He urged the GST Council to review the new TAX structure and ensure minimum friction and little problems for traders. In a stern statement, the TDP Minister blamed the Centre for its faulty policies and held GST and demonetization responsible for the decrease in growth rate.
He further added that chaotic the Real-Estate Regulation Act enacted by the Centre has adversely affected Industries and services sectors. He even alleged The Centre of sidetracking the actual GST and limiting states power to levy taxes. He urged GST Council to take a leaf out of the GST in New Zealand and accordingly bring in immediate changes.
GST: A Straightjacket for States
The comments from the TDB State Minister of Finance and Planning comes at the backdrop of the recent fallout between the state and central government. The fallout took place over the special state status issue of Andhra Pradesh.
Yanamala believes that the states have been conned by the Central Government. In order to receive the consent of the states to levy GST, The Centre had agreed to bear the revenue loss of states due to GST but was now collecting special cess and giving it to the states. He also claimed that amendments to the GST Act were made without taking the states into any sort of confidence.
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In conclusion, the state Minister of Finance in The TDP government strongly opposed the forced inclusion of traders into GST ambit. Yanamala also strongly opposed the provision for arrests of tax profiteers under the new tax regime.
