AP wants Centre to compensate purchase tax on foodgrains

Andhra Pradesh on Wednesday sought permanent compensation on the basis of quantum of foodgrains production, outside the purview of the new GST, as in the case of wheat-producing Haryana and Punjab.

Chief minister K. Rosaiah conveyed the concerns of the state to West Bengal finance minister Asim Dasgupta, who is the chairman of the empowered committee of finance ministers on goods and services tax (GST), during a meeting here on Wednesday.

“We conveyed that the purchase tax on paddy or wheat should be compensated permanently. We wanted that to be extended to us and all the sates that produces foodgrains, like Haryana and Punjab,” state stamps and registrations minister Gade Venkata Reddy told PTI.

Reddy is dealing with the GST issue. Mr Dasgupta, who was in Vijayawada to attend the extended Central Committee of CPI(M) meet, met Mr Rosaiah to gather his views on the GST.

Reddy said the state would support the Centre in its endeavour to roll out the new tax regime by 2011. The proposed bill for GST would be tabled in the ongoing session of Parliament.

Mr Reddy said the committee would meet Union finance minister Pranab Mukherjee on August 18 for further deliberations on the GST.

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