Hyderabad: AIMIM chief and Hyderabad MP Asaduddin Owaisi on Thursday expressed dissatisfaction with the latest GST Council decisions, warning that the new tax structure would cause significant financial strain on state governments.
Addressing a press conference in Hyderabad, Owaisi criticised the GST Council’s move to reduce the number of tax slabs and revise rates. The council, which met in New Delhi on Wednesday, decided to retain only the 5% and 18% slabs while removing the 12% and 28% categories. Additionally, it approved a 40% tax on luxury goods and removed GST on health and life insurance premiums.
Finance Minister Nirmala Sitharaman announced the changes following the Council meeting. However, Owaisi said his party could not support the decision. “This will seriously impact state revenues. Each state could face a revenue shortfall of ₹8–10 crore due to these changes,” he stated.
He reiterated that the restructuring, while benefiting some sectors, could destabilize state finances and undermine fiscal autonomy.
