Gujarat's minister of state for finance said it would be difficult for the UPA government to implement the Goods and Service Tax without the support of non-Congress ruled states like Gujarat, Tamil Nadu, Uttar Pradesh among others.
Gujarat's minister of state for finance Saurabh Patel today said that it would be difficult for the UPA government to implement GST (Goods and Service Tax) without the support of non-Congress ruled states like Gujarat, Tamil Nadu, Uttar Pradesh among others.
The issue has not got resolved due to the UPA government's indecisiveness and its policy of ignoring financial interests of the states, Patel told PTI.
Reacting to Prime Minister Manmohan Singh's statement to electronic media on Thursday blaming Gujarat government for delay in the rollout of GST, Patel said the arrest of the state minister that Prime Minister talked about happened on July 25, 2010, but Gujarat government had suggested a well-thought out approach towards GST before that.
He pointed out that at a meeting held on June 16, 2010 with Union Finance Minister Pranab Mukherjee, Gujarat Chief Minister Narendra Modi insisted upon a nation-wide IT network for successful implementation of GST.
Mukherjee immediately accepted the suggestion and gave necessary direction to his secretary. Before this, Gujarat government had submitted an alternative model draft before central government and the empowered committee in the presence of secretaries of central government in January, 2010, Patel
said.
Patel said the Gujarat government is opposed to the GST draft as it would increase prices of many items used daily by common persons by 7% to 8% besides making service sector more expensive.
Moreover, centre's announcement of reducing the threshold limit for small industries from Rs 1.50-cr to Rs 10-lakh would increase the tax load on the industrial units.
Patel said the central government came up with first draft of GST on July 21, 2010 that gave the finance ministry even more powers than the state assembly and Parliament.
Gujarat objected to it which was later joined by states like Tamil Nnadu and Uttar Pradesh.
Patel demanded to publicise the letters that Tamil Nadu chief minister wrote to the central government and said that it will make clear that all the states are opposing the centre's policy.
Patel also charged that the Central government announced the GST rates without discussing with the states. Centre only kept on talking about unanimous decision but never discussed with the states. It has not even listened to the suggestions of the empowered committee's chairman Asimdas Gupta, patel further alleged.
He also pointed out that the taxation structure shaped by the central government for the GST would prove helpful only to the big industries .
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}