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Demonetisation was unplanned, don’t repeat this error with GST, says Maharashtra Opposition

Mumbai city news: Opposition legislators slammed the state government for being unprepared for rolling out the important bill

Updated on: May 22, 2017, 08:42:53 IST
Hindustan Times | By , Mumbai
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Day two of the three-day special Assembly session to discuss and ratify the Goods and Service Tax (GST) saw the Opposition raising several concerns about the proposed legislation.

State finance minister Sudhir Mungantiwar during the second day of a three-day special session of the Maharashtra Assembly on Sunday. (Kunal Patil/HT Photo)
State finance minister Sudhir Mungantiwar during the second day of a three-day special session of the Maharashtra Assembly on Sunday. (Kunal Patil/HT Photo)

Opposition legislators slammed the state government for being unprepared for rolling out this important bill and pointed to loopholes in the proposed law.

Radhakrishna Vikhe Patil, leader of Opposition in the state Assembly, asked the state government not to make a mess with GST like it did at the time of demonetisation. “There was no planning before announcing demonetisation of old notes, which seriously affected common people. The state government should not repeat this while implementing the tax regime — GST,” Vikhe Patil said in the Assembly.

The Opposition leaders also used the opportunity to raise the issue of a loan waiver for distressed farmers, asking the state government to immediately declare relief for the agrarian community. NCP legislator Jayant Patil said the Yogi Adityanath-led Uttar Pradesh government has given a loan waiver of Rs1 lakh crore. “How many more days the Maharashtra government will study the issue of loan waiver before taking any decision?” he said.

Meanwhile, the state council cleared the Maharashtra Goods and Services Tax (Amendment, Validations and Savings) Bill, 2017, which will hand out compensation to local bodies for loss of revenue from local taxes such as octroi and local body tax, a day after the state Assembly passed it

Even as the council cleared the bill, they raised several doubts over the implementation of the new tax regime. For starters, the state will have to amend eight other existing legislations to avoid multiplicity of taxes and implement the GST from July 1. These include the Mumbai Municipal Corporation Act, the Entertainments Duty Act, the Motor Vehicle Act etc.

NCP leader and MLC Rahul Narvekar said with the implementation of GST, the state would compromise its constitutional governance as the tax does not have same rate.

“One nation, one tax” is the Union government’s slogan for GST. However, it is unclear to what extent is the government willing to compromise its legislative independence. We need uniform rate along with one tax for better functioning of this tax regime,” he said.

Dhananjay Munde, leader of opposition in the Legislative Council, questioned, “How is it ‘One Nation, One Tax’ if rates are different. Cost of petrol is highest in Maharashtra, whereas in the neighbouring state of Goa, it sells it at Rs60.”

Replying to the queries of the members, Deepak Kesarkar, minister of state for finance, said the State has kept provision to safeguard revenue for government. “We are not going to compromise legislative independence. All finance ministers are part of the GST Council and 75% consent is required to decide final rates,” Kesarkar said.

The all-important Bill for the Maharashtra Goods and Services Tax Act, 2017, will be discussed and is likely to be cleared by both the Houses on Monday.

  • Faisal Malik
    ABOUT THE AUTHOR
    Faisal Malik

    Faisal Malik is a senior journalist with over two and a half decades of experience covering Maharashtra’s politics, governance and public policy with a deep understanding of the state’s political landscape. He is a Senior Assistant Editor at Hindustan Times and has been associated with its Mumbai edition for more than a decade. Based in Mumbai, Faisal currently covers three major political parties in Maharashtra — Congress, Nationalist Congress Party (NCP) and NCP (Sharad Pawar). Over the years, he has extensively reported on major political developments, combining investigative insights with in-depth field reporting. His coverage has spanned a wide range of issues, from drought, farmer suicides, major development projects and grassroots challenges to major electoral battles, including three Lok Sabha and Maharashtra Assembly elections — 2014, 2019 and 2024. Before joining Hindustan Times, he worked with ‘The Asian Age’ and ‘Dainik Bhaskar’. An avid tea enthusiast, he enjoys reading history, Urdu literature and classical poetry. When away from the newsroom, he writes Urdu poetry inspired by human emotions, life's experiences, meaningful reflections and relationships. An amateur photographer, Faisal is passionate about capturing moments that often go unnoticed by the naked eye.Read More