Finance Minister Yanamala Ramakrishnudu has opposed the Union government’s proposal to exclude the jurisdiction of territorial waters abutting the coastal States in definition of a ‘State’.
The Minister, who participated in the eighth meeting of GST Council at New Delhi on Tuesday, said Andhra Pradesh had been levying and collecting VAT on the transactions taking place in the territorial waters extending up to 12 nautical miles from the coast. Collection of tax on transactions taking place in territorial waters was in vogue since Independence, he said.
About Rs. 600 crores per annum was realised on the sales of bunker fuels to foreign going vessels and on gas explored in territorial waters.
If the jurisdiction of territorial waters was taken away, it would result in loss of revenues to all the coastal States, including AP, he said.
The Ministers of other coastal States such as Karnataka, Tamil Nadu, Kerala, Maharashtra, Gujarat, West Bengal also expressed the similar opinion, according to a press release.
