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India’s Jaitley to meet state ministers to push tax reform

Though the government was unlikely to agree to a constitutional provision for capping the GST rate as was being demanded by the Congress, it might show some flexibility in accommodating Congress’ demand that the imposition of one per cent tax on manufacturing States be dropped.The decision to include GST in next week’s business was taken at a meeting of the Business Advisory Committee (BAC) of the Rajya Sabha.

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“What happened on Friday was by design”. He disallowed any further discussion on the matter. “It was planned by the government to disrupt the proceedings”, Sharma said. “That day, they were shouting vociferously”. Today they have lost their voice.

The Minister said Lok Sabha is likely to take up a Calling Attention Motion moved by Bhartruhari Mahtab (BJD) on the “Undertaking of a barrage project over river Mahanadi by Chattisgarh Government there by severely impacting flow of water into Hirakud dam in Odisha”, during the coming week.

Developments within and outside the Parliament over the last week could cause hiccups over the Goods & Services Tax (GST) Bill negotiations, which is pending in Rajya Sabha.

Other than these, the Compensatory Afforestation Fund Bill, 2015, the Indian Medical Council Bill, 2016, the Dentists (Amendment) Bill, 2016 and the National Institutes of Technology, Science Education and Research Bill, 2016 are also on the agenda.

Deputy Chairman PJ Kurien, however, said the bill can be taken up only on Friday this week, as on that day the private members’ resolutions would be taken up. The government has tweaked its parliamentary strategy, has allowed the opposition, especially the regional parties, a lot of space, which I feel is a signal that the GST Bill may be passed soon, ” said Manisha Priyam, a Delhi-based political analyst.

He said the Congress will continue to raise the issue in the Upper House until voting takes place on the bill. After meeting Mr. Jaitley last week, Bihar Chief Minister and JD (U) leader Nitish Kumar is backing the government’s move of not putting the tax cap in the Constitution amendment Bill.

The Congress-government relations have once again come under scrutiny.

Bhupender Yadav of BJP accused Congress of being anti-adivasis saying it was stalling an important Bill which would have helped the tribals of the country.

“The situation was entirely the creation of government”, he said, demanding that the bill be listed as item number one when private member business is listed.

“I don’t think the Prime Minister and his government are honest about any constructive cooperation”, Anand Sharma, a senior Congress lawmaker in the upper house of parliament, told the Indian Express newspaper at the weekend. According to members, the opposition has the Andhra Pradesh-related ‘private member bill as the readymade pretext for “aggressive action”.

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Kurien then gave a ruling and explained that the day for private members’ bill can not be changed immediately, and even if the process is initiated it will not mean the bill on Andhra Pradesh would be taken up immediately.

N.M. Ghatate