New Delhi: Distancing from Congress’s demand of a cap of 18 per cent on the GST rate, Kerala’s Finance Minister TM Thomas Isaac has given a spirited support to the Bill.
A member the CPIM Central Committee, Isaac said his state stands to gain from the Goods and Services Tax. This comes after Union Finance Minister Arun Jaitley’s meeting of state Finance Ministers in Kolkata.
Isaac wrote on his Facebook page that the Bill will bring “fortune” for Kerala. He said once the Bill is passed, the States will get a share of the Service Tax and thereby greater revenue.
“Kerala is a consumer State. We will not get any revenue if we buy goods for our use from other States as the taxes are paid at the producing Sates. But with the GST’s implementation, the consumer State gets the revenues. It is beneficial for Kerala and that is why the LDF Government is supporting GST,” Isaac said.
This comes at a time when Left parties have reiterated their opposition to the purposed GST and have said they stand with Congress on the issue. Sitaram Yechury had recently said that the Bill is against federal principles and that the CPI(M) will oppose it in Parliament.
It will be interesting to see if Isaac’s support to the GST is a change in stance of left party or a dissent note. Left-ruled Kerala’s support comes a huge relief for NDA government at the Centre.
