Sonia Gandhi calls for party meet on GST, hopes to persuade govt on 18% upper cap

Congress President Sonia Gandhi has called for a meeting with senior party leaders to discuss upcoming Goods and Services Tax or GST bill. Congress hopes to persuade government on the ring fencing of the GST to an outer limit of 18 per cent as also creating an independent mechanism for resolution of disputes.

The long-awaited tax reform bill will go to Rajya Sabha for floor test on Tuesday.  

“We hope to persuade the government in national interest and in the interest of people to agree to these two issues,” party’s chief spokesman Randeep Surjewala told reporters.

Noting that 18 per cent is “not some arbitrary figure”, he contended that imposing the burden of taxation on people of this country at a very-very high limit, ultimately will dis-incentivize them from paying their taxes leading to creation of parallel black money.

“With income tax slabs already between 30 per cent and 40 per cent, is it not reasonable and proper on part of Congress to say that let us put an outer limit of 18 per cent beyond which you can’t go”, he asked.

On reports of government seeking a higher cap, he said “We have given certain suggestions to make GST meaningful, practical and acceptable to the people who will be finally taxed.”

“GST is an instrument of growth that Congress conceived and introduced something that was blocked by Modi ji, Jaitley and Sushma ji and entire BJP for nearly 6 years,” he said, taking a dig at the BJP for opposing the measure during the UPA days.

He said the entire endeavour of the Congress is to ensure that the GST as passed by Parliament is not only consensus based but reflected the will of this country and it should “meaningfully be implemented on the ground and it should incentivize conformity to payment of taxes”.

Efforts to hammer out a consensus on the Goods and Services Tax bill gathered momentum yesterday for its likely tabling in the Rajya Sabha next week with the government reaching out to Opposition parties.

(With PTI inputs)