Last Friday witnessed the presence of PM Modi, Congress president Sonia Gandhi, Ex-Prime Minister Manmohan Singh, Finance Minister Arun Jaitley and Parliamentary affairs Minister Venkaiah Naidu in the 45-minute meeting, held at 7 Race Course, prime minister’s official residence. Gandhi unlike the rest of four, spoke the most about the GST Bill, which might get approved soon. Jaitley and Naidu did all the explanations on the viscous ideas about the same and also underlined the need for smooth functioning of the winter session of the parliament.
Related: PM Modi Invites Sonia Gandhi and Manmohan Singh on GS-Tea
Congress has put forward three objections- first, doing away one per cent additional tax benefit to the producing states and spreading it uniformly to all the states; second, constitutional cap of 18 per cent, and third, an independent dispute redressal mechanism or setting up adjudication authority. The two prominent leaders, Jaitley and Naidu said to the PM and the Congress leaders that they would respond after consulting the subject with their party.
“How can you provide for a cap on taxes in Constitution and create flawed tax architecture. You can’t have constitutional amendments for increasing or decreasing tax, each time it’s felt and go through that cumbersome process. More so, what wisdom would suggest that you put a cap of 18 percent on super luxurious items, including on cars like BMW, Rolls Royce. You can’t also put a lower tax cap on liquor and tobacco products. In a country like India you need three different kinds of tax structures on goods – one meant for the poor, other on items of mass consumption in urban areas and the third on luxury items,” conveyed by a top BJP leader.
