AP assembly resolution supports GST reforms despite revenue losses

The Andhra Pradesh Legislative Assembly on Thursday passed a resolution hailing the recent reforms in the Goods and Services Tax (GST), stating that the latest measure will strengthen cooperative federalism, boost consumption and drive investment.

Andhra Pradesh was the first state to pass a resolution on the GST reforms with Chief Minister N Chandrababu Naidu calling the reforms a game-changer, overriding apprehensions of officials about revenue losses and further financial strain. He said it would be beneficial in the long term.

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A Cabinet sub committee will be formed to study the impact and prepare an action plan for the GST reforms.

On the first day of the monsoon session of the Andhra Pradesh Assembly, a resolution was passed in support of the GST reforms, congratulating Prime Minister Narendra Modi for the landmark decision. “The historic reform will further strengthen cooperative federalism, promote ease of doing business, speed of doing business, and support labour-intensive sectors. It will boost consumption, drive investment, and contribute to the sustained growth trajectory of our nation’s economy. These reforms will usher in the growth of Indian companies, leading to a Swadeshi consumption pattern. In the future, this will make Indian brands become global,” the resolution stated.

It also thanked Finance Minister Nirmala Sitharaman for securing unanimity in the GST Council.

Speaking on the resolution, the state chief minister said, “140 crore people in the country will reap the benefits. The Centre called it a Diwali bonus but for us it will come before Dussehra. From the 22nd onwards the poor will have the opportunity to celebrate Dussehra, Diwali and Sankranti in a grand manner. It will simplify taxation and make the entire process more transparent.”

Naidu further said that though the state finance minister and finance secretary had warned of possible losses and financial strain under the GST, he had insisted on extending support in the larger interest of the country and the state. “We must look at the long-term reforms. The GST will be a game-changer. I told them not to object and to go ahead and support it,” said the chief minister, adding that it should be utilised to secure a 15 per cent growth rate for AP.

Naidu also praised Prime Minister Narendra Modi after the US President Donald Trump’s recent statement suggesting a reconciliation. He criticised the Opposition YSRCP for continuing to stay away from the Legislative Assembly and failing to appreciate the GST reforms.