Hoping to break the deadlock over rolling out the Goods and Services Tax (GST) ahead of the Empowered Committee of state Finance Ministers meeting on Wednesday,Finance Minister Pranab Mukherjee on Monday reached out to the BJP and met its top leadership over lunch. The attempt,it seems,has not borne fruit as the BJP itself is yet to arrive at a common position on the issue.
Among the BJP-ruled states,Madhya Pradesh is most vocal in its opposition to implementation of the GST,the roll-out of which has already been delayed by a year due to lack of consensus on various aspects including tax rates,tax base,exemption list and fiscal autonomy,which many states fear would be lost once the GST is in place.
Mukherjee hosted the BJPs parliamentary party chairman L K Advani,the leaders of the Opposition in the Lok Sabha and Rajya Sabha,Sushma Swaraj and Arun Jaitley respectively,to seek their help to convince the states where the NDA is in power to give their nod for implementation of the GST.
Sources said although the BJP in principle was in favour of the GST,it was unable to find a common position with some party-ruled states opposing and some favouring the new tax regime. It is not a political issue. The opposition has more to do with autonomy of states. While the states where end-use consumption is high will benefit,the states which are smaller but are sitting on huge raw material reserves and are unable to do anything because of high poverty and lack of development would suffer, said a party source.