Manufacturing states like Tamil Nadu will be severely affected by the GST.
NEW DELHI: Reiterating its stand that GST violates fiscal autonomy of states, AIADMK on Monday night staged a walkout from the Lok Sabha opposing the passage of the GST Bill. The ruling party in Tamil Nadu had adopted the same strategy in Rajya Sabha last week when the Bill was voted in the Upper House.
AIADMK floor leader in Lok Sabha P. Venugopal argued that the state would lose more than Rs 9,000 crore if the GST Bill is passed and the tax reform comes into force.
“The GST Bill disrupts the federal structure by giving Centre an upper hand. Manufacturing states like Tamil Nadu will be severely affected by the GST. The Bill needs further amendments to protect the financial interests of the state. Tamil Nadu stands to lose a lot of revenue if the Bill comes into force. We are primarily a manufacturing state and we will not be benefitted from this. We oppose it,” he said.
As finance minister Arun Jaitley was replying to the debate, Mr Venugopal announced AIADMK's walkout saying Mr Jaitley has not responded to their concerns positively.
Tamil Nadu has been opposing the GST Council saying it compromises the autonomy of the states in fiscal matters and has been batting for continuation of Empowered Committee of State Finance/Taxation ministers.
Chief Minister J. Jayalalithaa had on several occasions opposed the GST Bill in its current form and had even petitioned Prime Minister Narendra Modi demanding that the amendments proposed by her should be included in the Bill.
