 "Govt sanguine about GST passage minus Cong leg-up")
The Congress leadership, party President Sonia Gandhi and Vice-President Rahul Gandhi included, on Thursday indicated to the government that the outcome on its negotiations on the goods and services tax (GST) constitutional amendment Bill, particularly scrapping the one per cent additional tax on the interstate supply of goods, has been “positive”. This has paved the way for the government to take up the constitutional amendment Bill in the Rajya Sabha as early as next week.
On his part, Finance Minister Arun Jaitley consulted with Congress leaders like former Finance Minister P Chidambaram but also Rajya Sabha leaders of three regional parties and the two Left parties. These parties asked the government to assure the states that their financial needs would be addressed since the GST Bill would take away the states’ rights to raise resources.
Apart from the Congress, the All India Anna Dravida Munnetra Kazhagam has consistently opposed the GST. But government sources said the party has been approached and its members unlikely to disrupt proceedings when the Bill is taken up for voting. A constitutional amendment needs to be passed by at least two-thirds of half the strength of the House.
A consensus has emerged to take up the much-awaited Bill next week, sources said. The Rajya Sabha Business Advisory Committee, which consists of leaders of all political parties, met on Thursday evening. It had already allocated five hours for discussion and passage of the Bill. On Friday, Minister of State for Parliamentary Affairs Mukhtar Abbas Naqvi is slated to tell the Rajya Sabha as to when, during the course of next week, the government plans to take up the Bill for discussion and passage.
In the afternoon, Jaitley met Congress leaders P Chidambaram, Leader of Opposition in the Rajya Sabha Ghulam Nabi Azad and Deputy Leader of Congress in the Upper House Anand Sharma. The finance minister also met Samajwadi Party (SP) chief Mulayam Singh Yadav. Prime Minister Narendra Modi was seen chatting with Ram Gopal Yadav and SP member Neeraj Shekhar when the Rajya Sabha was adjourned briefly during Question Hour.
The finance minister held a meeting with Rajya Sabha leaders of SP, Left parties, Biju Janata Dal and Trinamool Congress. Together, these parties account for a sizeable 48 seats in the Upper House. Over the past fortnight, Jaitley has already held consultations with Janata Dal (United), Telugu Desam Party and Telangana Rashtra Samiti, which together have 19 seats. All the above parties have consistently supported the GST.
At Thursday’s meeting, Communist Party of India (Marxist) chief Sitaram Yechury flagged the states’ concern that the GST regime would lead the states “to come with a begging bowl to the Centre, placing them at the Centre’s mercy.”
“The state governments will be deprived of their only right to raise revenue, as this right would be abolished with the Bill”, given that they would not be able to impose any cess during an emergency or natural disaster,” Yechury said, adding this was conveyed to the finance minister at the meeting.
Yechury said the GST Bill is only meant for imposing a tax. It does not deal with Centre-state relations. “So, a resolution has to be found outside the Bill and the government has to come up with an assurance,” the CPI(M) general secretary said.
Yechury said the resolution adopted at finance minister’s meeting with his state counterparts needed to be made public. He said state governments will have no right, once the GST regime is implemented, to impose taxes like Kerala’s ‘fat tax’, West Bengal government’s tax to bail out victims of Saradha scam and Maharashtra’s octroi. “How will Maharashtra or Kerala be compensated if GST is implemented and the states’ rights are taken away?” he asked.
Yechury demanded an all-party meeting, as has been the practice before considering crucial legislations, prior to the Bill taken up in the Rajya Sabha.
On his part, Finance Minister Arun Jaitley consulted with Congress leaders like former Finance Minister P Chidambaram but also Rajya Sabha leaders of three regional parties and the two Left parties. These parties asked the government to assure the states that their financial needs would be addressed since the GST Bill would take away the states’ rights to raise resources.
Apart from the Congress, the All India Anna Dravida Munnetra Kazhagam has consistently opposed the GST. But government sources said the party has been approached and its members unlikely to disrupt proceedings when the Bill is taken up for voting. A constitutional amendment needs to be passed by at least two-thirds of half the strength of the House.
A consensus has emerged to take up the much-awaited Bill next week, sources said. The Rajya Sabha Business Advisory Committee, which consists of leaders of all political parties, met on Thursday evening. It had already allocated five hours for discussion and passage of the Bill. On Friday, Minister of State for Parliamentary Affairs Mukhtar Abbas Naqvi is slated to tell the Rajya Sabha as to when, during the course of next week, the government plans to take up the Bill for discussion and passage.
In the afternoon, Jaitley met Congress leaders P Chidambaram, Leader of Opposition in the Rajya Sabha Ghulam Nabi Azad and Deputy Leader of Congress in the Upper House Anand Sharma. The finance minister also met Samajwadi Party (SP) chief Mulayam Singh Yadav. Prime Minister Narendra Modi was seen chatting with Ram Gopal Yadav and SP member Neeraj Shekhar when the Rajya Sabha was adjourned briefly during Question Hour.
The finance minister held a meeting with Rajya Sabha leaders of SP, Left parties, Biju Janata Dal and Trinamool Congress. Together, these parties account for a sizeable 48 seats in the Upper House. Over the past fortnight, Jaitley has already held consultations with Janata Dal (United), Telugu Desam Party and Telangana Rashtra Samiti, which together have 19 seats. All the above parties have consistently supported the GST.
At Thursday’s meeting, Communist Party of India (Marxist) chief Sitaram Yechury flagged the states’ concern that the GST regime would lead the states “to come with a begging bowl to the Centre, placing them at the Centre’s mercy.”
“The state governments will be deprived of their only right to raise revenue, as this right would be abolished with the Bill”, given that they would not be able to impose any cess during an emergency or natural disaster,” Yechury said, adding this was conveyed to the finance minister at the meeting.
Yechury said the GST Bill is only meant for imposing a tax. It does not deal with Centre-state relations. “So, a resolution has to be found outside the Bill and the government has to come up with an assurance,” the CPI(M) general secretary said.
Yechury said the resolution adopted at finance minister’s meeting with his state counterparts needed to be made public. He said state governments will have no right, once the GST regime is implemented, to impose taxes like Kerala’s ‘fat tax’, West Bengal government’s tax to bail out victims of Saradha scam and Maharashtra’s octroi. “How will Maharashtra or Kerala be compensated if GST is implemented and the states’ rights are taken away?” he asked.
Yechury demanded an all-party meeting, as has been the practice before considering crucial legislations, prior to the Bill taken up in the Rajya Sabha.
