Falling Tax Collections in State a Warning Sign: Harish Rao

Hyderabad: Former finance minister and senior BRS leader T. Harish Rao on Thursday warned that Telangana’s tax collections were falling, and called it a “warning sign” for the state’s economy.

In a statement, Harish Rao said, “contrary to the Congress government and Chief Minister A. Revanth Reddy’s claims on ‘Telangana rising’, the fact is that state’s tax collections are falling.”

Harish Rao said the state’s economic performance had become a matter of serious concern. “Despite a robust growth trajectory in GST collections over the past six years, the state's GST growth rate has slumped to a mere 1 per cent this February under Revanth Reddy's regime. This decline is a symptom of a larger problem, pointing to a slowdown in economic activity, reduced consumer spending, and a decline in business confidence,” he said.

The state's GST growth rate was consistently above 6 per cent in the last six years except during the Covid pandemic period, Harish Rao said. Also falling are revenues from vehicle tax and property registrations since April 2024.

“The Revanth Reddy government's inability to boost GST revenues, coupled with the decline in registration and vehicle tax collections, exposes the shortcomings of its economic policies. It's high time for the government to acknowledge its mistakes, apologize to the people, and refocus its efforts on reviving the state's economy,” Harish Rao said.