Hyderabad: The state authorities fears a drop in tax revenues as quickly because the GST comes into stress. Deputy Chief Minister Kadiyam Srihari knowledgeable the Legislative Assembly on Monday that the exact quantum of loss might be assessed solely after the GST Council decides tax expenses category-wise.
However, the federal authorities hopes to get good revenues with elevated shares of service tax and Central excise beneath the GST regime. Replying to voting on Requires for Grants for 2017-18 on Enterprise Taxes Administration, Mr Srihari talked about, “Telangana stood first in the country in terms of higher growth rate in commercial tax collections at 15.85 per cent. However, uncertainty prevails over tax collections once GST comes into force. The GST Council is yet to finalise which item will come under which slab.”
He talked about that whereas the Centre has assured the states that if growth cost is beneath 14 per cent, it’d compensate them, nevertheless it certainly was unlikely that TS will get one thing since its current growth cost is above 14 per cent. “Clarity on all these issues is yet to come,” Mr Srihari talked about.
He talked about the federal authorities is incomes Rs 2,151 crore through it share in Central taxes, 50 per cent share in VAT collections furthermore one different Rs 700 crore through civil supplies division, which is ready to cease to exist as quickly as GST comes into stress.
However, he hoped that this can be compensated by elevated share in service tax and central excise tax. Of the Rs 35,000 crore industrial tax assortment at present, Rs 15,600 crore received right here from liquor and petroleum merchandise alone, he talked about.