The proposed implementation of Goods and Services Tax (GST) in Jammu& Kashmir has turned into a major controversy ahead of a special session of the State legislature beginning Saturday. The trade bodies, separatist groups and opposition National Conference (NC) have opposed the GST implementation saying the uniform tax regime would erode J&K’s special status and rob its fiscal autonomy. The traders have called a shutdown on Saturday even as the Government says the rollout of the GST would be in the larger interest without any bearing on the special constitutional status of the state.
The Governor NN Vohra has summoned a special session of the legislature beginning June 17 to discuss the implementation of the GST in J&K before its rollout at the national level on July 1. The constitutional amendment in the Constitution of India would not be implementable in J&K unless approved by the State legislature.
Ahead of the Assembly session, the Opposition NC declared to fight the implementation of GST tooth and nail in its present form. “It is akin to playing with fire. If GST is implemented in the current form, we will fight it tooth and nail,” former Finance Minister and senior NC leader Abdul Rahim Rather said.
“The implementation of GST will change the tax administration of the state and large chunk of the tax administration would shift to the Government of India,” Rather said.
The NC’s determined stance came to fore after the local traders and separatists groups began voicing their concerns on GST implementation.
“We will boycott new tax regime in its present form. It will erode the state’s special status,” Yasin Khan, president of Kashmir Traders and Manufacturers Form (KTMF) said. Khan called for a shutdown against the implementation on Saturday.
“We don’t believe in one-India, one-tax slogan and stand against GST as Kashmir is a disputed territory,” Khan said.
“The implementation of GST by extending 101st amendment of Constitution of India directly to J&K would infringe upon the special status of the State,” Federation of Chamber of Industries Kashmir (FCIK) said in a statement.
However, Finance Minister Haseeb Drabu, himself a leading economist described the opposition to GST as handiwork of vested interests.
“False bogey of dilution of dilution of State’s fiscal autonomy has been raised by vested interests to distort the genuine debate over bringing the State under the new tax regime,” he said.
He said that in the past as many as 46 times, constitutional amendments have been implemented in J&K through a presidential order and it was for the first time that an amendment in the Constitution of India was being brought to the assembly for discussion.