AP opposes cess on sugar proposed by GST Council

AP opposes cess on sugar proposed by GST Council
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Finance minister Yanamala Ramakrishnudu on Friday wrote a letter to the GST Council that the proposal of additional levy in the name of cess on sugar is not acceptable to Andhra Pradesh and the problems of sugar sector may be addressed through direct budgetary support.

Amaravati: Finance minister Yanamala Ramakrishnudu on Friday wrote a letter to the GST Council that the proposal of additional levy in the name of cess on sugar is not acceptable to Andhra Pradesh and the problems of sugar sector may be addressed through direct budgetary support.

In the letter to the chairman of GST Council, the finance minister opposed the proposal included in the agenda for the 27th meeting of GST Council.

In a recently conducted meeting through video-conference, the GST Council discussed the issue of imposition of cess on sugar at the rate not exceeding Rs 3 per kg over and above the GST rate of 5 per cent.

Yanamala said the sugar industry was in problems and the said collections would be utilised for the welfare of the sector in general and farmers in particular. He requested the GST Council not to impose cess on sugar as it puts additional burden on the common man.

Further, the minister stated that the levy of cess by the Government of India is against the spirit of implementing GST that is ‘One tax, one nation.’
The minister also pointed out that the Government of India had already stopped issuing sugar for public distribution system and consequently, the state governments were forced to bear subsidy burden on sugar supplied through PDS.

The government of Andhra Pradesh is burdened with the subsidy to the tune of Rs 250 crore per annum on sugar. Any additional levy on sugar in the name of cess will only increase the subsidy burden on the state, he said.

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