At a time CPI(M) General Secretary Sitaram Yechury is trying to strengthen the opposition to the Goods and Services Tax Bill in Parliament, his party’s Central Committee member and Kerala Finance Minister TM Thomas Isaac has given a spirited support to the Bill.
After a meeting of the 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.
CPI(M)’s dissent noteYechury had recently said that the Bill is against federal principles and that the CPI(M) will oppose it in Parliament. CPI(M) member KN Balagopal had also given a dissent note to the Select Committee on GST and said with the Centre having an absolute say over the decision making process on the GST, the States will lose its financial independence in the long run and corporate houses will dictate the policies of even the local governments.