|
“States by and large
differ with the Thirteenth Finance Commission on the GST compensation matter,”
Dr Asim Dasgupta, Chairman of the Empowered Committee of State Finance
Ministers, said here on Friday.
Simultaneously, the Finance Minister, Mr Pranab Mukherjee, assured the empowered
committee today that the Centre will stand by the States to ensure that the
revenue loss, if any, on GST introduction is compensated fully.
“This is a very positive suggestion coming from the Union Finance Minister. We
will be having a meeting with him within about fortnight to discuss the GST
compensation and also the CST compensation for the current fiscal,” Dr Dasgupta
told reporters after a three-hour meeting of the Empowered Committee here.
Dr Dasgupta also said that the Union Finance Minister has communicated to the
Empowered Committee that he was prepared to go beyond the Rs 50,000-crore
compensation (over five years) mooted by the Thirteenth Finance Commission. The
Empowered Committee Chairman, however, declined to comment on the compensation
model that would be suitable for the States or the estimated revenue neutral
rates at the States level.
On CST (Central Sales Tax) revenue loss compensation for 2010-11, Dr Dasgupta
said that the Centre has now asked the Empowered Committee to suggest a scheme
of compensation for this purpose. As such, for the current year, there was no
concept of Central compensation for CST revenue loss.
He also said that the Law Ministry was expected to give its final clearance on
the draft Constitutional (amendment) Bill in 10 days. “We will then look at it
and arrive at a view,” Dr Dasgupta said.
On value added tax (VAT) revenue growth for 2009-10, he said that the growth
rate was close to 20 per cent.
Meanwhile, official sources said that the Centre continues to stick to its stand
of having a common threshold for both State GST and Central GST. Some States
like Madhya Pradesh want the Empowered Committee to stick to its stand to keep
electricity duty, stamp duty, motor vehicle tax, entry tax and entry tax in lieu
of Octroi outside GST.
Source: The HinduBusinessLine, India, dated
22/05/2010
|
