Hyderabad, July 25: Endowments minister G Venkata Reddy said that the goods and services tax (GST) system might come into force from the
next financial year and the Centre is working on it.
Speaking to newsmen here today, he said that he had attended the empowerment committee meeting on the implementation of GST this month. The earlier meet was attended by chief minister K Rosaiah when he was the finance minister.
The minister said the GST was intended to replace the present multiple taxation system that was imposing about 24 per cent tax on each consumer. The GST would bring down the burden by 4 to 8 per cent, he claimed.
There was a need to amend the Constitution to implement the new taxation system and it should be passed with 2/3 majority by the Parliament and by 50 per cent of the states, Venkata Reddy said.
In the present system there were state and central taxes which were overlapping, the minister said and added
that the customs, excise, VAT, CST and surcharges were being imposed on tax payers in the indirect taxes, he explained.
Due to multiplicity in taxes the burden was becoming more at the lowest level i.e. at the tax payer level, he said
The new system would rationalise this and simplifies the taxation, he said and added that however, with the new system the state would lose some revenue and the Centre had accepted to bear it.
As far as the losses due to no tax on certain food items is concerned, the Centre had accepted to reimburse it fully in the present financial year, Venkata Reddy said. In this financial year the revenue from foodgrains tax was estimated to Rs 1,500 crore and the Centre had given 60 per cent of it so far, he said.
Speaking on the cancellation of mines lease at Bayyaram in Khammam district, the minister said there were no differences in the ministry and all the ministers have the same opinion.
–Agencies