Haryana wants 1% additional tax on goods, services under GST

The Haryana government today said it has pitched for allowing the state to impose one per cent additional tax on goods and services under GST regime, saying it fears loss of revenue for being a manufacturing state.
"In our assessment, states which have strong manufacturing base may face revenue loss after GST comes into force. So to compensate that revenue loss, Haryana has proposed that it be allowed to impose one per cent tax on goods and services," Haryana Finance Minister Captain Abhimanyu told reporters here today.
"Centre has agreed to our proposal to impose one per cent tax on goods for some years initially but we wanted that we be allowed to tax services also," he said.

Asked whether additional one per cent tax will not put extra burden on people, Abhimanyu said that there would not be an extra load on people rather it would compensate revenue loss to the state.
Earning substantial portion of revenue from foodgrain, Haryana has also pleaded with the Centre not to subsume taxes on farm items in GST.
"Centre has assured all those states which are earning substantial amount of revenue from farm products that they will be compensated for revenue loss for 5 years," Abhimanyu said.

He added that the state government had also sought from the Centre not to include tobacco in GST regime.

"We have urged the Centre that like liquor, tobacco should also be kept out of GST regime," he said.
Hailing the GST regime, the minister said that it would help in boosting the country's economy and the state as well traders and industry were excited about the GST regime.
Dubbed as the single biggest indirect tax reform since independence, the GST will subsume various levies like excise duty, service tax, entry tax and octroi.