Amaravati, May 4 (UNI) Andhra Pradesh Minister for Finance Yanamala Ramakrishnudu requested GST Council Chairman not to impose cess on sugar, as it causes additional burden on the common man.
The Minister sent a letter to the Chairman, in the wake of the GST Council in its 27th meeting through Video Conference 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 five per cent.
The Council stated that the sugar industry is facing problems and the said collections will be utilized for the welfare of the sector in general and farmers in particular.
Mr Ramakrishnudu said that the levy of cess by the Centre is against the spirit of implementing GST, that is one-tax-one nation.
The Minister also pointed out that the Union government had already stopped issuing Sugar for Public Distribution and consequently, the state Governments are forced to bear subsidy burden on sugar supplied through PDS.
The state government 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, Mr Ramakrishnudu said.
He demanded that the proposal to levy cess on sugar should be withdrawn and the problems of the sugar sector may be addressed through direct budgetary support.