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Reduction of GST slabs: Himachal industry minister expresses concern over state’s fiscal health, welcomes move
Chauhan said, the states where there is non BJP government, have openly started demanding to bear the loss caused by reducing the GST slab
Welcoming the reduction in GST slabs, industry minister Harshwardhan Chauhan on Thursday expressed concern over reduction in revenue collection of ₹1,000 crores for Himachal Pradesh facing fiscal challenges.
Speaking to media persons, Chauhan on Thursday said, “Reducing the GST rate is a welcome step. This will provide relief to the common man. Some things will become cheaper. But, this will reduce the revenue collection of Himachal.” He said that the change in GST slab will cause a loss of about ₹1,000 crore.
He said, the states where there is non BJP government, have openly started demanding to bear the loss caused by reducing the GST slab.
Adding, he said, “Himachal is already facing fiscal challenges owing to tapering revenue deficit grant and reduction in the state’s borrowing limit. Already the GST compensation is also stopped from July 2022. So now this reduction in revenue collection of ₹1,000 crores to pose another challenge to the state.”
Former CM Jai Ram Thakur hails the move
Former chief minister and Leader of Opposition Jai Ram Thakur has hailed Prime Minister Narendra Modi’s decision to abolish the 12% and 18% goods and services tax (GST) slabs, calling it a “historic step” that will bring relief to key sectors, including agriculture and healthcare.
Thakur said, “The reduction will be a major relief for farmers. In the health sector, especially generic medicines, almost all have been brought under the 0% tax category.” He further added that daily-use items had also been brought under lower GST brackets.
“For states like Himachal Pradesh, where 80% of the population is dependent on farming and horticulture, this will be a big contribution. It will also provide significant relief to the health sector,” he said.
