GST bill likely to be introduced despite opposition
12 Feb 2011
Finance minister Pranab Mukherjee is likely to introduce a Constitution amendment bill to facilitate the proposed goods and services tax (GST) despite the BJP-ruled states continuing to oppose it.
Though Mukherjee once again made a strong pitch on Friday to get all states on board for the launch of the indirect tax reforms, he only managed to convince 16 states.
"Since the issue has been under discussion now for four years and majority of states have expressed support for early introduction of the bill ... it was time for action," a finance ministry statement quoting Mukherjee said on Friday.
''I solicit your support to go ahead with the introduction of the draft amendment Bill in the budget session of the Parliament,'' said a written copy of finance minister Pranab Mukherjee's speech on Friday to state finance ministers.
The finance ministry said it was the prerogative of the executive - the union government - to introduce a bill seeking an amendment in the Constitution. "It is Parliament's prerogative to either decide in favour of its approval or its rejection," it said. The bill may be introduced during the upcoming budget session of Parliament.
Earlier in the day, the finance minister told the empowered group of state finance ministers that they should allow the bill to be moved in Parliament. It could then be discussed further as in any case after introduction the bill would be referred to the parliamentary standing committee.
