Maharashtra Chief Minister Uddhav Thackeray on Sunday unleashed a new debate in the country, by asserting that if the GST system of tax collection had failed, Prime Minister Narendra Modi should admit the mistake, make course corrections in it and if need be, go back to the old system of taxation in the country.
Addressing a Dussehra rally at the Savatantra Veer Savarkar hall near Shivaji Park in north-central Mumbai, Uddhav said: “ I have a strong reason to believe that the GST system has failed. The Prime Minister should admit that the system has failed and make improvements in it. Otherwise, if necessary, the Government should go back to the earlier system of taxation”.
Uddhav slammed the Centre for the delay in the release of a staggering Rs 38,000 crore, which is due to the state towards compensation of the Goods and Services Tax (GST) and devolution of taxes for the current fiscal (2020-21).
“On one hand, the Narendra Modi government does not release the GST compensation due to us. On the other, the ruling BJP announces that it would give vaccines free to all people in Bihar free of cost. We would like to know from the BJP as to whose it is spending to give free vaccines to the people of Bihar?” Uddhav asked.
“In between the Centre came with a proposal that the states borrow money to fund the development works. Now the Centre says it will borrow money for the state. I would like to know who will repay the borrowed money,” Uddhav asked.The chief minister said that when the powers to raise taxes were with the states, the Shiv Sena had opposed GST. The taxes from the states would go to the Centre, which would in turn disburse money to the states.
“If the Centre cannot give us compensation of GST, I would invite all chief ministers on one platform to decide on the way out of the problem the states are facing currently,” Uddhav said.