This Article is From Aug 12, 2015

Congress Protests Stall Big Tax Reform GST: 10 Developments

Congress Protests Stall Big Tax Reform GST: 10 Developments

Finance Minister Arun Jaitley moves the Goods and Services Tax (GST) bill in the Rajya Sabha on Tuesday

New Delhi: The Congress today stalled a last-minute attempt by the Modi government to pass the Goods and Service Tax bill, aimed at creating one of the world's largest single markets and driving economic growth. Finance Minister Arun Jaitley has said the government will push for the GST bill tomorrow.

Here are the latest developments:

  1. Members of the Congress yelled slogans in the well of the Rajya Sabha, leading the chair to adjourn proceedings until the morning of Thursday, the last day of the Monsoon Session of Parliament.

  2. It is now extremely unlikely that the Bill can get passed in this session. After clearing the Rajya Sabha, it has to be sent for approval to the Lok Sabha.

  3. Sources have told NDTV that the government is open to extending the current session or calling a special session to pass GST, billed as the biggest tax reform post-Independence. A final decision, however, will be taken tomorrow.

  4. Failure to get Parliament's nod for the GST bill in this session will make it hard for the government to meet a self-imposed deadline to roll out the levy from April next year.

  5. The bill creates a national sales tax to replace a matrix of levies in the 29 states. After it is sanctioned by Parliament, half of India's states need to endorse the reform.

  6. "It's a sad day for democracy," said Rajya Sabha Deputy Chairman PJ Kurien today as he struggled to continue proceedings amid loud protests by the Congress lawmakers. The House saw repeated adjournments.

  7. The Congress has been unrelenting in its protests through the session, refusing to allow Parliament to function till its demand for the removal of three top BJP leaders is met.  

  8. The government has accused the Congress of creating obstacles in the path of the country's economic growth. It has attempted to bring together other opposition parties in support of the bill. The government hopes to demonstrate that the Congress is politically isolated on GST and that its disruption of the monsoon session has been very costly.

  9. The bill seeks to amend the Constitution and two-thirds of both houses must must approve it. The government and its allies are in a minority in the Rajya Sabha and need the support of opposition parties.

  10. In the last session the Lok Sabha - where the government has a huge majority - had passed the GST bill, but it was sent to a committee for review by the Rajya Sabha. The Lok Sabha will now have to again pass the amended bill after the Rajya Sabha does.



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