Separatists and Opposition are bracing up for a showdown against the Mehbooba Mufti-led government over implementation of the Goods and Service Tax (GST) in Jammu and Kashmir.
Leading the charge is the main opposition National Conference. "Accepting the GST in its present shape and form would cause irreparable damage to the state's special status, its fiscal as well as political autonomy. The State Government has failed to come up with a clear and transparent stand on the issue," said Abdul Rahim Rather, senior NC leader and former finance minister.
Rather rejected the Mufti government's contention that the implementation of the GST regime would not affect the state's fiscal autonomy nor supersede Section 5 of the Constitution of J&K as "a false and wrong assurance".
"Before the Amendment 101 to the Constitution of India, the Centre could only impose tax on the manufacturing of goods in form of excise duty. Centre had no right to impose taxes within the state on intra-state sales of goods. Through this Constitutional Amendment 101, the Centre now has the right to even impose taxes on intra-state sales in all states, except Jammu and Kashmir," Rather said.
Separatists too have joined the chorus, opposing the rolling out of the GST in the restive J&K. Joint Resistance Leadership (JRL), an amalgam of Hurriyat hawk Syed Ali Geelani, moderate Hurriyat chairman Mirwaiz Umar Farooq and Jammu and Kashmir Liberation Front chairman Mohammad Yasin Malik, who spearheaded last year's unrest, said it is a well thought out plan to cripple state's trade and economy.
"A few state ministers in league with authorities are being lured to implement GST in state," said a spokesman of the Joint Resistance Leadership.
J&K government has summoned a special session of the Assembly on June 17 to discuss GST and pave way for its implementation in the state from July 1.
...& ANALYSIS
- J&K will have to pass special law to be able to implement GST as its current Constitutional status does not mandate new indirect tax reform.
- Kashmir parties fear that GST will weaken the special status granted to J&K.
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