According to a popular Newspaper report today, Telangana Chief Minister Kalvakuntla Chandra Sekhar Rao is in no mood of being lenient to his fellow Telugu state. In his meeting with commercial tax officials, KCR clearly said the officials to impose CST (Central Service Tax) on all the goods that come from Seemandhra. Telangana government is expecting 100 Crore income from these taxes. The CST will come in to effect very soon from all the eight check posts between Telangana and Seemandhra.
On the other side, if Seemandhra imposes similar taxes, it is expected to get 80 Crores income in the form of taxes. Since Telangana is on 20 Crores higher side, KCR is resorting to these taxes. But the people on both the sides will bound to suffer due to price hike. Pesticides, Fertilizers, Petrol, Diesel, Natural gas, Cashew and sand are being exported from Seemandhra to Telangana. And from Telangana, Seemandhra is importing Cement, Maida, Cotton and beer. With these taxes, Real estate in Seemandhra is bound to suffer while Telangana will have to pay heavy price for fuel.
Former IAS Ashutosh Mishra committee which is appointed to deal with exports and imports between both the state during the bifurcation asked both the governments to negotiate and come to a conclusion regarding the taxes. But looks like Telangana government is in no mood of sitting across the table.
