Sukhbir seeks relief in lieu of CST
Punjab deputy chief minister Sukhbir Singh Badal today said the Prime Minister's office has been withholding the release of Rs 20,000 crore as compensation due to state governments in lieu of phasing out of central sales tax (CST) despite its clearance by former finance minister Pranab Mukherjee.punjab Updated: Jul 20, 2012 23:14 IST
Punjab deputy chief minister Sukhbir Singh Badal on Friday said the Prime Minister's office had been withholding the release of Rs 20,000 crore as compensation due to state governments in lieu of phasing out of central sales tax (CST) despite its clearance by former finance minister Pranab Mukherjee.
Sukhbir said the Congress-led UPA government was stifling the economy of all the states by closing all options available to them to raise their revenue.
"When the CST was being phased out and its rate was being brought down from 4% to 2%, taking all states towards the regime of goods and service tax (GST), the Congress-led UPA government at the Centre had assured that it would compensate all the states for the revenue loss suffered by them on account of the new tax regime," said Sukhbir, complaining that the PMO was now going back on its promise by withholding the compensation due to the states despite its clearance by the former finance minister.
Charging the Congress-led UPA government with adopting a retrograde approach towards fiscal and revenue reforms, Sukhbir said it was blaming state governments for fiscal mismanagement on one hand and taking contradictory positions on the other.
First Published: Jul 20, 2012 23:10 IST