Congress want Rahul to get credit for GST, welfare of nation secondaryTop Stories

December 05, 2015 16:17
Congress want Rahul to get credit for GST, welfare of nation secondary },{Congress want Rahul to get credit for GST, welfare of nation secondary

(Image source from: Congress want Rahul to get credit for GST)

Hard to build a political consensus on the contentious GST Bill, the government has come far by indicating that it is yielding significant ground, but the Congress is increasingly proving to be a tough customer. Congress may not budge unless Rahul Gandhi gets credit. The Congress is not convinced of the government’s argument as to why capping on taxes could not be mentioned in a constitutional amendment. It could be a solace to the Congress that the Subramanian panel has recommended the doing away of one percent additional levy by the manufacturing states and is also weighing the option on the list of tax rates in the accompanying legislation other than the Constitutional amendment.

“I do not think the Congress party has moved away from its position. As of today our stand remains the same,” said Congress spokesperson and party MP Sushmita Dev.

Chief Economic Adviser Arvind Subramanian-led panel submitted its report on GST to the Union Finance Minister Arun Jaitley. The Congress MP from Silchar in Assam chose to divulge details of what actually transpired at the meeting, which Prime Minister Narendra Modi had held with Congress president Sonia Gandhi and former prime minister Manmohan Singh on GST. The meeting was attended by Finance Minister Arun Jaitley and Parliamentary Affairs Minister Venkaiah Naidu.

“I think in that meeting it was made crystal clear what the party stand is. The AICC president made it clear that whatever the concerns of the government are, she would take it back to the party leaders and discuss them. I would like to say that it is still being discussed and I believe that the Congress party has repeatedly said that logically the government of the day must debate it out,” the Congress spokesperson said.

Reports have been already out that the panel under Subramanian favoured capping of taxes around 18 percent and is also favourable to scrap the 1 percent additional levy for manufacturing states like Tamil Nadu, Gujarat and Maharashtra.

“After seeing the trend of this government and with the recent intention that has been expressed by the skill development minister of yet another 2 percent tax, I have to say that the Congress party’s fear as to what would happen to GST, if the 18 percent rate was not ‘capped’ is real. This may even increase the financial burden that this government is seeking to impose on the common man. Therefore, I believe, to some extent, in demanding the 18 percent ‘cap’ in GST, we find some vindication. I also hope that this government will roll back its announcement of 1 percent additional tax as we apprehend that this 1 percent will also eventually be borne by the common man and by the consumer,” said Congress spokesperson and party MP Sushmita Dev.

The Congress may be doing this tough posturing to claim credit for introducing certain amendments in the GST bills and making the government yield under its pressure. The party will obviously credit its vice president Rahul Gandhi for that. Welfare of the country is secondary.

By Premji

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