Bhatti seeks protection of States’ revenues in GST reforms
Telangana's Finance Minister Mallu Bhatti Vikramarka has urged the Indian central government to protect state revenues during upcoming GST reforms. He specifically highlighted concerns regarding motor vehicle tax impacts and proposed measures to combat tax evasion and identity theft.
Why it matters
Fiscal federalism and tax reform are critical to state-level budget stability and the funding of public services like healthcare and infrastructure.
Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka has urged the Centre to ensure that proposed GST reforms do not adversely affect the revenue interests of States, pointing out that Telangana could face an annual revenue impact of over ₹800 crore from proposed changes relating to motor vehicles alone.
Addressing the 57th meeting of the GST Council on Wednesday, Mr. Bhatti sought that the full financial implications of changes concerning refunds on motor vehicles, capital goods and input services be shared with States before they were implemented.
GST accounts for about 35% of Telangana’s own tax revenue and any decline in collections would directly affect expenditure on schools, hospitals, welfare programmes and infrastructure, he said.
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