Opposition spurns Pranab plea to help speed up GST

06 Aug 2010

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Opposition parties on Thursday refused to accept finance minister Pranab Mukherjee's plea to their leaders to instruct finance ministers of states ruled by them to facilitate the rollout of the proposed goods and services tax (GST) by 1 April next year, maintaining that cooperative federalism should extend to areas of governance other than inflation.

With the GST deadline under threat, Mukherjee, while replying to the debate on price rise in the Rajya Sabha, invoked the principle of `collective responsibility' for hammering out a consensus on the direct tax reforms by the stipulated time. The opposition, however, rebuffed the overture.

''The finance minister wants the opposition to share the blame for inflation. He therefore repeatedly referred to cooperative federalism. As it is, our federalism is too centre-centric,'' opposition leader in the Rajya Sabha Arun Jaitley said while winding up the debate.

The opposition states, the BJP leader maintained, were conscious of their responsibilities against hoarding and in making the PDS effective. "If the centre wants the spirit of co-operative federalism, it cannot merely extend to sharing the blame for inflation. Mineral-rich states are complaining about discrimination. So are gas-producing states.

 State legislation which requires the centre's concurrence is being held up. The opposition governments are being destabilised by misusing central agencies. If you are committed to cooperative federalism, let it extend to these areas of governance also,'' Jaitley said, addressing the finance minister.

In view of the aggressive stance adopted by the finance ministers of opposition-ruled states during the meeting of the empowered committee on GST on Wednesday, Mukherjee made an impassioned plea to leaders across the aisle for helping him get the new tax regime on course. ''It's a major tax reform. It can be achieved only with the support of all,'' the finance minister told the house.

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