Paving way for the “biggest tax reforms”, Punjab Vidhan Sabha on Monday “unanimously” passed the Punjab Goods and Services Tax (GST) Bill, 2017.
The Bill was introduced in the House during the ongoing budget session by the state Finance Minister Manpreet Badal after the state Cabinet, in its meeting in the morning, gave its approval to amend the Punjab Municipal Fund Act, 2006, and the Punjab Municipal Infrastructure Development Fund Act, 2011, to pave way for the implementation of the Punjab Goods and Service Tax Bill, 2017.
Manpreet, describing the GST Bill as “biggest tax reforms” in the country, said that it would bring Punjab, which is the heavily taxed state in the country, at par with the neighbouring states turning its disadvantage into advantage.
Earlier, Aam Aadmi Party (AAP) MlA from Kharar Kanwar Sandhu expressed his concerns related to an increase in the price of agriculture inputs and equipment under the GST regime because of “high” tax rates.
Sandhu questioned whether the State Government has taken any assurance from the Centre that it would consider the increasing cost of cultivation due to increase in taxes under GST regime while calculating the minimum support price (MSP).
He added that the Punjabi cinema will also be ruined after the GST rollout. “To what extent are we be compensated…Will Punjab lose its financial autonomy with the GST coming into force…It says that state will get Rs 10,500 crore in return for five years…what after thatIJ” he questioned.
BJP MlA from Phagwara Som Parkash, while urging the Speaker Rana KP Singh to provide the Bills to be discussed well in advance, pointed that with GST’s implementation, 37 returns to be filed which will increase so much of paper work.
Former Finance Minister and SAD MlA from lehra Gaga Parminder Singh Dhindsa wanted zero tax rate on agriculture inputs emphasising that if it was not done, Punjab farmers would be a suffered lot.
He also asked the Finance Minister to share the “rebated” goods as some states have been given the flexibility to exempt some goods of local importance from the GST.
Manpreet, defending the Bill, stated that the State has right to decide on the toll tax, petroleum, liquor for human consumption, entertainment tax by the local Government, taxes on vehicles, transportation of goods, among other things.
“Besides, we can also ask for rebate on goods like Punjabi jutti, phulkari, or anything,” he said adding that we can also give exemption to any Punjabi movie which we feel is encouraging our culture.
He added that with GST, there will be no inspector raj, and no involvement of taxation officers. Manpreet maintained that the rates, after GST implementation, would come down and won’t increase as is the perception.
Responding to Som Parkash’s assertion, Manpreet said that there would be “zero paper work”…and returns will be filed with the push of one button.
He informed the House that the raw goods have been exempted, while branded products and goods like chocolates, coffee, which are not meant for the poor, will have increased tax rates.
“I believe that the taxes on fertilizers, and pesticides would not pass on to the consumers and the farmers would not be affected by that…besides, there would be no tax on animal driven implements,” he clarified.
All through the discussion, AAP’s ally, lok Insaaf Party (lIP) MlA from ludhiana South Balwinder Singh Bains was seeking the Speaker Rana KP Singh’s attention to speak on the GST Bill, which was plainly overlooked by him.
Eventually, Bains staged a walkout from the House, shouting slogans, which describing the Bill as “against farmers”.