Former finance minister P. Chidambaram, who was the first to speak from the Congress benches in the Rajya Sabha on Wednesday, was unrelenting in his two demands — that the GST rate be incorporated in
Former finance minister P. Chidambaram, who was the first to speak from the Congress benches in the Rajya Sabha on Wednesday, was unrelenting in his two demands — that the GST rate be incorporated in the relevant Constitution Amendment Bill itself, and that when the GST Bill is brought, it be a financial bill and not a money bill, which the Rajya Sabha has no power to reject or amend.
Asking other MPs to back his demand, he said an 18 per cent base rate for this pan-India levy was most appropriate. Just as the income-tax rate can’t be levied at the whim of the executive, and needs legislative approval, the same must also hold true for the Goods and Services Tax rate, Mr Chidambaram said.
“The government was (initially) rather stubborn... I, on behalf of my party, loudly and clearly want that the tax should be not more than 18 per cent... Taxation is the exclusive power of Parliament, we can give some leverage to the executive, but it should remain the domain of Parliament,” Mr Chidambaram said.
Mr Chidambaram, who initiated the debate on the Constitution (122nd Amendment) Bill 2014, also sought the government’s assurance that when the GST Bill is brought, it be a financial bill, not a money bill. Most Opposition parties also demanded that the GST Bill be brought as a financial bill in the Winter Session of Parliament.
Clarifying the Congress’ stand on GST, Mr Chidambaram said his party was never opposed to the idea of GST, but only to certain provisions in the GST Bill. The bill, he noted, though clunky in places, had been improved upon after the government held talks with various parties, including his.
“The Congress Party was never against the idea of GST. The country is now ready to embrace GST. We wanted it (bill) to be more perfect. But there can never be a perfect bill,” he said. On objections raised by his party to the bill, the senior leader said the Congress wanted a cap of 18 per cent on the tax rate under GST, scrapping of the one per cent retrogade tax besides setting up of a disputes redressal mechanism for resolving issues arising out of tax disputes between states, or between the Centre and states. Seeking an assurance from the government, he said when the GST Bill is introduced, it be brought as a financial bill and not as a money bill. “This is far too transformational and important legislation that one House of Parliament should just speak on it and the other will vote. We want that both Houses should debate and vote on it,” he said. Accusing the government of bringing in GST to favour corporates, Mr Chidambaram said his party has to speak for ordinary people. “When we say cap the tax rate, we are saying that it cannot be changed by the whim of the executive. A rate must only be changed by parliamentary approval. It cannot and ought not be changed at the whim of the executive. The people of India want a lower tax rate In the name of the people... the standard rate should be capped at 18 per cent,” the Congress leader said, adding that he doesn’t buy the argument that by keeping the rate at 18 per cent, the states will lose revenue.
