Vijayawada, Aug 5: Andhra Pradesh will suffer a loss of Rs 4,700 crore every year on account of implementation of Goods and Services (GST) tax, state Finance Minister Y. Ramakrishnudu said on Thursday.
He said the central government should compensate the state to the tune of Rs 23,500 crore for five years, adding it was the central government's responsibility to ensure that injustice was not done to states due to the GST.
Ramakrishnudu, however, welcomed the passage of constitutional amendment bill in Rajya Sabha. He said the Telugu Desam Party (TDP) and all other parties supported the bill in the larger interest of the country.
The finance minister said the TDP always supported tax reforms. He said unified tax good was good for both the centre and states.
Ramakrishnudu feels that with GST regime, tax on goods may come down but the same on services will go up.