Congress had disrupted the Monsoon session of Parliament over its demand for resignation of External Affairs Minister Sushma Swaraj and Rajasthan Chief Minister Vasundhara Raje over Lalitgate and that of Madhya Pradesh Chief Minister Shivraj Singh Chauhan over Vyapam. Finance ministry officials say introducing the new tax could increase the revenues of the Centre and state governments substantially as all consumers would pay taxes on most goods and services. The development in the Congress party assumed significance as the chances of the bill getting passed have increased considerably after an open willingness for dialogue from both sides of the divide in Parliament. The GST aims to whittle down more than a dozen state levies to create a single market among the country’s 1.3 billion people for the first time.
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Congress’s Kantilal Bhuria defeated BJP’s Niramla Bhuria and improved party’s tally to 45 in the lower house.
The Modi government has been facing flak for the slow pace of economic reforms and the delay in roll-out of the GST.
After that meeting was over, Jaitley had told media persons that the government would establish fresh contact with the main Opposition party and carry forward the negations or so-called consultation process.
“It is quite natural that they should talk to the opposition, but the Prime Minister has invited Sonia Gandhi and Manmohan Singh only after public pressure”.
Finance Minister Arun Jaitley had earlier said that Prime Minister Modi was ready to speak to everyone to forge a consensus on the GST Bill. Looks like his close advisers had read what this writer’s suggestion that Modi needs to break bread with the Gandhis and Manmohan Singh to break political and parliamentary impasse over key reforms.
The Bill will insert a new amendment in the Constitution which will give equivalent powers to the Central and the state government to make laws on the taxation of goods and services.
The party wants a cap on the GST rate at 18 percent, deletion of the provision which allows imposition of one percent tax by additional levy and an independent dispute resolution mechanism.
The thaw over the GST notwithstanding the Congress is likely to continue with its offensive against the NDA in Parliament on issues like Lalitgate and rising intolerance as reflected by recent incidents like Dadri lynching and setting ablaze of two Dalit kids in Haryana.
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After the discussions with Rahul, Congress floor leader in parliament Mallikarjun Kharge said “if our concerns are met…a formula is reached…then we can move ahead”. “We have brought in the GST and we want to pass it”.
