DMK keeps up pressure on GST

CHENNAI: The DMK, a key constituent of the UPA government at the Centre, on Tuesday opposed the Goods and Services Tax (GST) and said that another round of comprehensive consultation among all States was necessary before arriving at a final decision on the introduction of the tax.

A resolution to this effect was adopted at the DMK’s Parliamentary party meeting chaired by Chief Minister M Karunanidhi.

Responding to queries of media persons after the meeting, the CM said the DMK MPs had deliberated in detail the pros and cons of the GST Bill and expressed confidence that the Centre would not proceed with the amended Bill without taking the States into confidence.

In this connection, the resolution also said that the Centre’s approach on issues like education and taxation should not affect the rights of the States.

The resolution recalled that when the Centre had sent the draft Bill to the State governments, the Tamil Nadu Chief Minister had raised his reservations about it and said that it would, to a great extent, dilute the taxation rights of the State and would interfere with the federal principle.

Later, the Centre amended the Bill and even the amended one had a flawed design and unrealistic time table. As a result, the tax on goods used by common man would go up while tax on luxury items would come down. Hence, the Bill would be considered as a retrograde measure and implementing a uniform national tax in a country like India which had diverse situations would not be feasible.