Skip to main content

Govt optimistic on GST passage

By
Minister of State for Finance Arjun Ram Meghwal expressed hope that the Rajya Sabha would clear the Constitutional amendment for a proposed national goods and services tax (GST), with support from regional parties.  On the sidelines of an Assocham event, he said the Congress party's demand for capping the GST rate in the Constitution was "not practical" and the government was trying for a consensus.
“There are many chief ministers — of UP, Odisha, West Bengal, Bihar — who all want GST to come fast...We hope the Rajya Sabha will be able to pass the Bill in the third week of the session," he said. The current session of Parliament began on Monday and ends on August 12.
The Congress, which originally mooted GST in the Budget for 2006-07, to replace all indirect taxes, has been demanding the overall rate be capped at 18 per cent and an additional one per cent tax designed to compensate manufacturing states that fear loss of revenue be scrapped. Recently, it indicated it was open to have the cap in the accompanying GST Bill, rather than in the Constitutional amendment.
Janata Dal chief and Bihar chief minister Nitish Kumar met finance minister Arun Jaitley on Tuesday. He supported the government position that the tax rate not be mentioned in the Constitutional Bill and be left to the proposed GST Council to determine.  Talking to the media after his meeting, Kumar said any cap on the GST rate would be discriminatory on states, as it would take away their powers to generate revenue. Bihar's tax revenue has plummeted after Kumar's government imposed prohibition on liquor in April.
The Centre had earlier planned to introduce the GST, which intends to convert 29 states into a single market through a new indirect tax regime, from April 1 this year. However, the legislation has yet to pass the opposition-dominated Rajya Sabha, after having passed the Lok Sabha.
Information & broadcasting minister Venkaiah Naidu said: "We want to get the GST passage through consensus. Although we feel the adequate numbers are there, we would like to see the House approve it unanimously."
Naidu said the biggest beneficiaries of GST will be the states, and the chief ministers want it to be passed at the earliest. "The signals I am getting from all sides is positive."
The government has agreed to a five-hour debate on the Bill in the Rajya Sabha in the current session.
Business Standard New Delhi, 21th July 2016

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more