NEW DELHI: The government received a shot in the arm on Tuesday, with Bihar chief minister Nitish Kumar coming out in support of the Goods and Services Tax (GST) Bill and opposing the Congress-mooted cap on tax rate.
Kumar met finance minister Arun Jaitley in Parliament and assured him that the Janata Dal (United) would support the bill when it is taken up for discussion. “The GST is in the country’s best interests, and is beneficial for the state. We have always supported it,” he told reporters after meeting Jaitley.
Kumar said the party does not approve of capping the tax rate, a key demand of political ally Congress, because such a clause would prevent the government from taxing a section of the people — such as those buying high-end vehicles — in emergencies.
Earlier in the day, Jaitley told BJP MPs that the government was trying to build a consensus on the GST Bill and would reach out to smaller parties for support. Prime Minister Narendra Modi also expressed similar views on taking regional players aboard at an NDA meeting on Monday evening.
A senior minister said the select committee’s report on GST was already before the Rajya Sabha, and it was the draft bill that the government would improve upon in consultation with the Opposition. “Even Congress MPs were panel members, but they did not voice their dissent note in the report,” a Union minister said.
{{/usCountry}}A senior minister said the select committee’s report on GST was already before the Rajya Sabha, and it was the draft bill that the government would improve upon in consultation with the Opposition. “Even Congress MPs were panel members, but they did not voice their dissent note in the report,” a Union minister said.
{{/usCountry}}The Congress has maintained a non-committal tone on the bill, stating that it was yet to receive the government’s response to its three demands in “black and white”. It wants the rate of the goods and services tax capped at 18%, the removal of a proposed 1% additional levy on inter-state trade, and an independent dispute resolution mechanism for states.
“The government has said it accepts our demands, but we need to see how they formulate the three points into the bill. We are yet to receive it,” a senior Congress leader from the Rajya Sabha said.