Opposition States Demand Compensation for GST Revenue Loss
Opposition-ruled states are seeking compensation from the central government due to anticipated revenue losses from GST reforms. These states propose an additional duty on luxury goods and request protections against profiteering. The overall aim is to safeguard state revenues and ensure the benefits reach the public.
- Country:
- India
In a concerted effort, opposition-ruled states have called on the central government to compensate for anticipated losses amounting to Rs 2 lakh crore annually, stemming from the proposed GST reforms.
On Friday, finance ministers from Himachal Pradesh, Jharkhand, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana, and West Bengal advocated for a compensation period of five years, citing potential destabilization of state finances.
The states also recommended an additional levy on sin and luxury goods to uphold their current tax revenues and ensure that the tax rate cuts benefit the public, reducing the possibility of profiteering.
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