Home Economic Times Congress counters PM’s VAT pitch with states’ GST dues

Congress counters PM’s VAT pitch with states’ GST dues

Congress counters PM’s VAT pitch with states’ GST dues

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Congress chief Rahul Gandhi on Thursday mentioned the PM was indulging in ‘coercive’, not cooperative, federalism by blaming states for ‘gasoline worth hike’ or ‘coal provide scarcity’ regardless of the Centre’s position in these. As a counter, the social gathering additionally dragged the Centre into the difficulty of the non-reimbursement of GST dues to states.

“Excessive gasoline costs — blame states; coal scarcity — blame states; oxygen scarcity — blame states; 68% of all gasoline taxes are taken by the Centre. But, the PM abdicates accountability. Modi’s federalism is just not cooperative. It’s coercive,” Gandhi tweeted, a day after the PM urged opposition-ruled states to slash the VAT on gasoline costs.

In the meantime, former finance minister P Chidambaram latched on to the finance ministry assertion on the large quantity the Centre owed to states on the GST account to drive dwelling the flip aspect of the PM’s demand. “On the day, the PM exhorted states to chop the VAT charge on petrol and diesel, the MoF introduced that the Centre owes `78,704 crore to states! The quantity owed is definitely extra. In the event you add the quantities that states declare are owed to them, the full quantity could also be greater… Solely the Controller of Authorities Accounts can certify the right amount,” Chidambaram posted on Twitter and added, “It will likely be fascinating to know why the MoF embarrassed the PM on the day he selected to admonish states!”

Congress spokesman Abhishek Singhvi additionally questioned the rationale of the Centre not even reimbursing agreed parts of the GST as a consequence of states.

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