(a) whether the Andhra Pradesh has demanded that the State
Government be allowed to levy as Rs.200 advance development
cess on all passengers flying out of Hyderabad;
(b) if so, the action taken on the request;
(c) whether the amount collected would be exempted from income
tax; and
(d) if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI GINGEE N. RAMACHANDRAN)
(a)&(b): Yes Sir, the matter is under consideration in the
Ministry of Civil Aviation.
(c)&(d): As per article 289 of the Constitution of India,
the property and income of a State shall be exempt from Union
Taxation unless and to the extent provided otherwise by the
law of Parliament.