Deputy Chief Minister Bhatti Vikramarka Mallu today said that Telangana would lose about Rs 5,000 crore annually due to revisions in the Goods and Services Tax (GST) rates, but described it as a conscious policy decision aimed at the welfare of the poor, middle class and farmers.
At an interactive session with traders organised by the Commercial Tax Department at the MCRHRD Institute, Bhatti said that the revised GST rates would make many goods cheaper, including agricultural equipment, food products and cement (with the slab reduced from 28% to 18%).
This, he said, would benefit crores of people and boost the construction sector amid growing urbanisation.
He urged traders to transparently display the reduced prices and ensure that the benefits reached the public.
Highlighting the misuse of the input tax credit (ITC), he appealed to honest traders to help curb the malpractice.
The Deputy CM assured the gathering that the government was open to addressing the traders' concerns, and called for cooperation between the State and the business community to drive growth.
He added that Hyderabad was transforming into a "city State", and that urbanisation is increasing across the State, which would enable the infrastructure sector organise its business systematically.