Mounting the pessure on government to impose the goods and services tax (GST) from July 1, Panthers party Saturday said that the delay could spell chaos for the state.
In a statement issued today, Harsh Dev Singh, Panthers party chairman and member of the All Party committee on GST constituted by the govt, said that any “delay in its implementation could spell chaos in the state.’’
He said that any departure by Jammu and Kashmir state from the national schedule envisaging its roll out from mid night of June 30, would lead to fiscal mess besides the threat of double taxation “adversely affecting the traders as well as the consumers.’’ He said that there was “absolutely no justification for withholding the GST implementation as all other states of the country had accepted the GST besides it having been adopted by 168 counters of the world.’’
Singh said that he has communicated the viewpoint of the party to the government after consultation with a cross section of society including traders, academicians and other members of civil society.
Favouring the switch over by the state to the new tax regime alongwith the rest of the country, Harsh Dev Singh however called for certain safe-guards so as to protect the interests of the working class as well as other marginalized sections of society. He said that in the first instance tax limit of 28 percent on certain items needed to be revised as it was “too high and could have a cascading effect on prices of goods and particularly services which hitherto had attracted nominal taxation.’’ Further, he pointed out, that no country of the world had as “high a taxation rate under GST as the proposed 28% on certain items by the central committee on GST.’’
He called for placement of essential household items in the negative list besides “concessions for the basic necessities of life.’’
Panthers party leader said that the “taxation of the marginalized sections and working class was unacceptable and needed to be reviewed.’’ He called for disbanding of Lakhanpur toll plaza as its continuance, as proposed by the state govt, was opposed to the concept of one tax regime. He called for taxation of cross LOC trade which was being placed under negative last by the state govt under the “smokescreen of confidence building measures.’’
He said that such an exemption was unwarranted with respect to a trade which had proved to be the biggest source of “hawala trade, cross bordering smuggling and money laundering.’’ On the contrary, the safe-guards under LOC were required to be made more stringent, he added.
Calling upon the govt for creating the requisite infrastructure for implementation of GST on war footing, Singh said that it was necessary so as to ensure for smooth transition from the existing system to new system. He called for simplification of the procedures as under the proposed GST system a trader has to file 38 returns annually which was highly “troublesome for a marginal trader.’’