Friday, 24 April 2015

Row Over GST: Key Reform Measure in Trouble as Opposition Protests in Parliament

NEW DELHI:  The entire opposition walked out of the Lok Sabha on Friday in protest against the government's move to hold a discussion on the Goods and Services Tax (GST) bill that Finance Minister Arun Jaitley tabled in the lower house today.

The Congress-led opposition wants the bill to be sent to a parliamentary committee for scrutiny of the changes made in it before the house debates and votes on it. The GST is key to the reforms agenda of the Narendra Modi government, which wants to push it through Parliament soon so that it can prep for a rollout by April next year. The government wanted a discussion today and on Monday and a vote on the bill the same day.

The Congress also brought up a number of technical reasons to stall the discussion today, including the argument that financial business cannot be brought up on a Friday, which is usually kept aside for private members' bills to be taken up.

It also said that pending financial business must be taken up first.

GST will cut down the large number of taxes imposed by the central government and states and will lead to the creation of a unified market. The bill, which amends the Constitution and so requires a two-thirds majority in both houses to vote for it, already has the consent of states, who are key stakeholders.

"The UPA must start supporting legislations that it itself introduced. You should be happy that the good work was done by your government. I am accepting that, complimenting you and taking it forward," said Finance Minister Arun Jaitley after he tabled the bill.

The GST Constitutional Amendment Bill, which was introduced in the Lok Sabha by the Congress government in 2011, has lapsed and so the Modi government has had to come up with a fresh bill.

The BJP has a big majority in the Lok Sabha or lower house and will not find it difficult to pass the bill in that house. But it is in a minority in the upper house or Rajya Sabha and is struggling to pass key legislation in that house.