Bihar deputy chief minister Sushil Kumar Modi has been elected chairman of empowered committee of state finance ministers that is expected to play a crucial role in laying the road map for the goods and services tax (GST), a high utility tax reform the Centre is keen to implement. Speaking to FE?s Bijay Shankar Patel, Modi said a consensus was needed among the states and even among political parties to implement GST.
You initially rejected the offer to become chairman of the empowered committee of state finance ministers. What made you change the decision?
When I was made this offer initially, I thought I would not get much time for this as I was preoccupied with the works of my state.
But then I was persuaded by many state finance ministers and economists to reconsider my decision. So, I have now decided to accept the offer.
Are you hopeful that you can get the BJP-ruled states like Madhya Pradesh and Gujarat on the board considering their differences with the Centre on the GST structure?
We are not only trying to bring Madhya Pradesh and Gujarat on board but also want that all states benefit from the new tax system and all their concerns are addressed properly. I can only try (for the consensus). I can?t compel anyone. We have to bring all political parties on board. Parliament is also a forum to build the consensus.
Do do have any deadline for GST rollout? By when, could it be implemented?
I?m not in a position to give a definite time-frame. The time-line to implement GST is not in our (the states?) domain. The GST constitutional amendment bill is currently with the standing committee on finance. We don?t know how much time they will take to give their views. Besides, we don?t know when the GST Bill would be introduced in Parliament and how much time it would take to pass it. So, it is entirely in the Centre?s domain.
What are the states? concern on GST and how will you address them?
There are some issues on which consensus need to be built. Some states say that coal should be kept out of GST. The coal producing states have expressed their concerns. Another issue is about the dispute settlement authority. Some states are in favour of the body while others are not. There are also a host of other issues being raised by many states. These issues need to be resolved.
What are your views on Central Sales Tax compensation issue for 2010-11 and current fiscal?
We are discussing it. The Central government has assured us that it will compensate the states for the losses they have incurred. There are some issues and the formula needs to be worked out.
What are your priorities as EC chairman?
The empowered committee is meeting next month. There we will prepare road map for the future.
Today?s (Monday?s) meeting agenda was mainly the appointment of the chairman of the panel.