GST - No Super FM - Without Prince of Denmark, I cannot stage Hamlet - Pranab
THE Finance Minister Pranab babu, yesterday told Parliament that he had no intention of becoming a Super FM, but he did not want to be crowded.
Yesterday, he told the Rajya Sabha,
The BJP, in its Manifesto, had stated two things in this regard. It said, "If we come back to power, then, we will abolish Central Sales Tax, and we will introduce GST at the rate of 12-14 per cent. I entirely agree; I am ready to do that, provided I get support from all cross- sections of the House. In the other House, my colleague, the former Finance Minister, Mr. Sinha, was saying that he had set up the institution of Empowered Committee of State Finance Ministers. I am maintaining it. Shri Chidambaram retained it, and I am retaining it. I am utilizing their services. We have covered a large area, and if we can introduce the GST from 1st April, 2011, then, that will be a major tax reform after independence.
I would request the leadership of various political spectrums. Please talk to your State Finance Ministers and State Chief Ministers, wherever you are empowered, because the time is running out. If I want to introduce it from 1st April, 2011, I must have the Constitution (Amendment) Bill ready and introduce it in this Session of Parliament. If I can introduce it in this Session of Parliament, then and then only, after sending it to the Standing Committee, and after the Standing Committee making its recommendations, we can get it passed in the Winter Session. And, after we get it passed in the Winter Session, 15 out of 28 States will have to ratify that Constitution Amendment. Then, it can be effectively introduced from 1st April, 2011.
On rest of the matters, now, somebody was saying, "You have to take the States on board." Of course, without taking the States on board, I cannot do it. I have no intention of being the super Finance Minister. I want to be one of the Finance Ministers. That is why I am contemplating, in the constitutional machinery, a Council of Finance Ministers. I am going to circulate the Amendment, which I am going to propose, which we have given to State Finance Ministers; I am waiting for the recommendations of the Empowered Committee, which has met yesterday. Then, I will circulate it to the political parties to formulate their views before it is introduced in the House.
But if we can do that, that will be a major task. There will be no super Finance Minister. Collective decisions will be taken but, surely, you will appreciate, in a Council, where the Finance Minister of the federal Government would be the Chairman and where he would be assisted by only one MoS and the Council would consist of 28 State Finance Ministers, there should be some mechanism through which the Central Finance Minister is not completely crowded out. Because it is a matter of money and finance, I shall have to come to you to seek your approval to impose the duties and taxes. Therefore, if I do not have a final say in that matter, you will not allow me to improve any of the taxes and proposals. Similarly, I understand, the States should have their right to impose taxes and get the approval of their State Assemblies. That compromise we would be able to make. It would not be difficult with the collective thinking, collective decision, of all of us. But we shall have to expedite this process.
Speaking in the Lok sabha, the Finance Minister said,
Without taking the States on board, how can I have the GST? Without Prince of Denmark, I cannot stage Hamlet. They are the Prince of Denmark. They are the main actors. What I appeal to you that the Central leadership should have discussions with them and if we can find a viewpoint of convergence. I have no intention of becoming the Super Finance Minister to interfere with the State GST. They will have their rights as I shall have my right because I am accountable to you. No tax can be levied without your approval; no expenditure can be made without your approval. Similarly, they have accountability to their States. That basic structure cannot be altered. So, what we can do for the practical purpose? I quoted your manifesto (referring to BJP) not for scoring a brownie point but only to say that I entirely agree with it that it should be desirable if it is around 12 to 14 per cent. It would be desirable if I can completely abolish the Central Sales Tax. But I cannot do it alone. That can be done collectively by all the political parties who are running the State Governments who have representation in both the Houses of Parliament. The short point which I was trying to drive at, if we can do right now because in the remaining three-four weeks, if I can place the Constitution (Amendment) Bill for the consideration of this House, then, it can be sent to the Standing Committee; after scrutiny by the Standing Committee, in the Winter Session we can discuss. And then, it may be possible to have it.
About the rate of taxes, in respect of the convergence of the other areas, that with the Empowered Committee of the State Finance Ministers, I am engaged with them. That is a good institution you have established. I congratulate you and I appreciate it. I am using it. It is not that I have abandoned it. I am waiting for their Report and their comments on the Draft Constitution Amendment, which I have given to them. After that, I will circulate to the political parties for their comments because here I would require their support. But, I am waiting to have their views first.
Yesterday, the Empowered Committee met. Tomorrow, the Chairman of the Empowered Committee would brief me as to what transpired there. Thereafter, I will have meeting with them, sometime later. But before that, if you can exercise your influence as a national leader, it would be beneficial to us.
Looks more like a statesman than a seasoned politician!