E-Paper
Hand of support, but Congress to keep up pressure
NEWDELHI: The Congress wants to keep the NDA on a tight leash on GST even as it ensured passage of the 122nd Constitution Amendment Bill in the Rajya Sabha on Wednesday to clear the path for the landmark reform.
Former finance minister P Chidambaram announced the party will campaign across states for capping the new tax rate at 18% — a move that takes the political tussle over tax rates from the negotiating tables to public platform.
Congress deputy leader in Rajya Sabha Anand Sharma also indicated a prolonged campaign on the GST rate. “We will always maintain that the tax rate should not be high,” he said during the debate in Rajya Sabha.
Chidambaram tried to garner support from regional parties: “By capping the rate we mean it should not be changed at the whim at the executive. I ask you (MPs), do you want the tax rate to be changed by executives or the Parliament?”
In Rajya Sabha, the government came under sharp attack from parties such as the AIADMK and the CPI(M). BJP ally Shiv Sena criticised some provisions of the bill that would affect municipal bodies.
During the debate the Congress used every opportunity to underline its role in the journey of the GST. It also reminded the BJP of its hostile stance against the GST bill when the UPA introduced it. “That time, it was political consideration and not on issues. Modiji led the protests. After 2014, things changed. CM Modi became PM.”
With Congress’ support crucial for the bill’s passage, finance minister Arun Jaitley acknowledged the Opposition party’s role in preparing the GST bill. “This is one of the most significant tax reforms in India’s recent history. It was first mooted in the budget speech of P Chidambaram. Discussion paper was released in 2009. A formal constitution amendment was introduced after the budget in 2011,” he said.
Chidambaram “welcomed” the government’s “friendly and conciliatory tone” but quipped that the “tone and approach” had changed only in the last three or four weeks. The Congress leader clarified that the party had never opposed the concept of GST but wanted amendments in the NDA government’s draft bill. While the government moved nine amendments to address Opposition’s concerns, the former minister added they were “pieces of clumsy drafting”.
Both Chidambaram and Yechury questioned how can the government park the revenue outside the Consolidated Fund of India — as proposed in an amendment. The Congress and the Left demanded further tightening of the redressal mechanism and that a regressive tax like indirect tax should not high.
Samajwadi Party’s Naresh Agarwal wanted to know if GST will affect food prices. He sought government’s assurance against price escalation. Trinamool’s Derek O’ Brien slammed the Congress and the BJP for delay. “When Virat Kohli was in school, we started talking about GST. For the sake of children, pass the GST bill early.