Jaya meets Modi, says GST impacts fiscal autonomy of states like Tamil Nadu

  • HT Correspondent, Hindustan Times, New Delhi
  • Updated: Jun 14, 2016 19:10 IST
Tamil Nadu chief minister J Jayalalithaa with Prime Minister Narendra Modi in New Delhi on Tuesday. (PIB)

Tamil Nadu chief minister J Jayalalithaa met Prime Minister Narendra Modi on Tuesday and told him the proposed Goods and Services Tax would impact the fiscal autonomy of states like Tamil Nadu.

Jayalalithaa’s remark came shortly after finance minister Arun Jaitley said every state either supported or accepted the proposed move except Tamil Nadu, which expressed its reservations and offered suggestions.

The Tamil Nadu CM submitted a memorandum of 29 demands to the PM, television channels reported.

Read: All states virtually support GST, only Tamil Nadu has reservations: Jaitley

“GST impacts the fiscal autonomy of states like Tamil Nadu... Expect big revenue loss for manufacturing state like Tamil Nadu,” Jayalalithaa said in the memorandum, according to NDTV. “The Centre should accept the AIADMK’s amendments to the GST Bill,” the memorandum said.

“A number of concerns of Tamil Nadu need to be addressed by the Centre on GST... petroleum products must be kept out of GST,” it added.

The proposed tax reform, the country’s biggest revenue shake-up since independence, seeks to replace a slew of federal and state levies, transforming the nation of 1.3 billion people into a customs union.

During the meeting at the Race Course residence of the prime minister, Jayalalithaa also demanded the restoration of water level at Mullaperiyar dam to 152 feet.

Interlinking of rivers, retrieval of Katchatheevu island and inclusion of fishermen in the Scheduled Tribes list are also listed in the memorandum.

In the memorandum, the state has also urged for the early commissioning of Unit 2 of Kudankulam nuclear power plant.

Jayalalithaa, who arrived in the afternoon, met 50 of her party MPs, the largest regional group in Parliament, before she drove to Modi’s residence.

The Tamil Nadu CM had also urged the Centre to set up an All India Institute of Medical Science in the state along with addressing the issues related to NEET in state.

This was Jayalalithaa’s first visit to the national capital since winning the second consecutive term in Tamil Nadu after the AIADMK secured a thumping victory in the assembly polls that concluded last month.

Jayalalithaa, when she called on Modi on June 3, 2014 immediately after he took over as Prime Minister, had flagged the state’s concerns over many issues including the GST.

A meeting between the two took place last August when Modi had visited Tamil Nadu. He called on Jayalalithaa at her Poes Garden residence breaking protocol and she had submitted a memorandum comprising several state specific requests to him.

With inputs from agencies

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