The AAP Government all set to pass the Goods and Services Tax (GST) Bill on Wednesday. Deputy Chief Minister Manish Sisodia has made it clear, even as the Arvind Kejriwal-led Government supports the bill and intentions behind the move, it is still concerned on existing taxation structure and would oppose it in the GST Council, an Indian Express report said.
While briefing media persons on Tuesday, Sisodia explained that there was a need for a “less complex structure, lower taxes” for “increased compliance”.
Chief Economic Advisor Arvind Subramanian had said on Monday the bill could be model for the 21st century but had rued that the system continued to remain “flawless” as subjects like real estate and alcohol remained outside its realm.
The deputy chief minister had claimed that apart from AAP, all other state governments opposed keeping real estate within the GST as “politicians and influential people…put their black money in these businesses”. On Tuesday, his focus was not limited to issues relating to alcohol or land but extended to the actual taxation of several services, the report said.
“GST is country’s most important tax reform and our responsibility is to represent Delhi and its people,” he was quoted as saying. The deputy CM further said that for benefit of the residents of the national capital and small traders, the need was to focus on “lowering the tax rate” to “increase compliance”.
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“There are problems in the GST’s implementation that could lead to disaster,” he added. Sisodia also said that that various state governments needed to come together to continuously work on the the bill. “Take, for instance, opticals. It is not a luxury product, but a necessity. A lot of children, some very young, need to get spectacles,” he was further quoted to have said by the paper.
In the meantime, Leader of Opposition Vijender Gupta demanded that the Arvind Kejriwal-led government announce compensation for the three MCDs, which would lose revenue after GST is implemented.