Finance Minister Arun Jaitley moves the Goods and Services Tax (GST) bill in the Rajya Sabha
The government's last-minute push for a major tax reform fell flat today, with the opposition Congress refusing to call off protests in Parliament to allow a discussion on the
Goods and Services Tax (GST).
"The Congress' policies were a liability on the country when in power, and its policies remain a liability today," said Finance Minister Arun Jaitley, accusing the opposition party of seeking to obstruct the country's economic growth.
The Congress-commissioned chaos in the Rajya Sabha meant that the House was adjourned seconds after the government introduced the GST proposal, which creates a national sales tax to replace a matrix of levies in the 29 different states.
The GST Bill has already been cleared by the Lok Sabha, where the government has a huge majority. But in the Rajya Sabha, it is heavily reliant on the support of the opposition. As the bill was introduced there, Congress members stormed into the well shouting "This won't do."
There are just two days left in this session of Parliament. Failure to pass the GST Bill now will make it hard for the government to meet a self-imposed 2016 deadline for implementing it. After it is sanctioned by Parliament, half of India's states need to endorse the reform, a process that is likely to be lengthy.
Supporters say the GST will add up to two percentage points to economic growth, boost manufacturing and ease of business, and ensure cheaper and more efficient products for consumers.
The GST Bill was originally written by the Congress, whose coalition government was defeated by the BJP last year.
The Congress, hemmed into just 44 Lok Sabha MPs, has said it will not allow Parliament to function unless the PM removes senior BJP leaders it accuses of graft, including Foreign Minister Sushma Swaraj. The Congress also wants changes to the bill, which it says must be more "simple and comprehensive".