Chennai: MDMK general secretary Vaiko and CPM state secretary G. Ramak-rishnan on Wednesday said the rights of states would be severely affected by the GST regime since the council which makes all decisions is dominated by the Union government.
Vaiko said the state governments would have to get the GST council’s approval for making any change, but their voice would be ignored in the council and the voices of states would be suppressed. The GST procedures are against democracy and federalism and the economic sovereignty of the states had been crushed. The taxation powers of the states had been snatched away and the revenue would also come down, he said.
Expressing similar views, Ramakrishnan told reporters here that all the states had been given one vote in the GST council without considering if they are manufacturing, consuming or small states, while the one third of the members are from the centre.
To make any changes in GST, states would have to obtain the approval of GST and it would be hard for the states to push for changes as the council is dominated by the centre. Council’s decision had not been subjected to Parliament’s approval and this is a denial of democracy, he said.
Expressing support to the widespread protests by several sections of people against GST, he said the centre must accept their pleas and reduce the taxes. Even if the prices of a few commodities would come down, the act had not ensured that it would reach the common people. So, the corporate companies alone would benefit from the reduction of prices, he said.
