GST Cuts: A Double-Edged Sword for State Finances
The recent GST rate cuts announced by the GST Council could result in substantial revenue losses for states, according to AIMIM president Asaduddin Owaisi. He criticized the government for not detailing a compensation plan. Meanwhile, ex-BRS leader K Kavitha resigned amid internal party turmoil.
- Country:
- India
The recent GST rate cuts, approved by the GST Council, are sparking concerns among state governments due to potential revenue losses. AIMIM president Asaduddin Owaisi voiced criticism over the government's decision, highlighting the lack of a compensation mechanism for states facing an estimated Rs 8,000 crore to Rs 10,000 crore deficit.
Owaisi hit back at arguments suggesting that lower GST rates could boost consumption and tax collection, calling such claims mere rhetoric. He emphasized the disproportionate financial impact on states, expressing skepticism over any real benefits for the common populace.
In a separate development, former BRS leader K Kavitha publicly resigned, citing party tensions. The move follows her suspension and comes amid allegations of internal pressure against her father, KCR, the party founder.
(With inputs from agencies.)
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- GST
- rate cuts
- revenue loss
- Owaisi
- compensation mechanism
- state finances
- K Kavitha
- resignation
- BRS
- KCR
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