Excelsior Correspondent
New Delhi, July 13: Minister for Finance and Ladakh Affairs, Abdul Rahim Rather has sought protection of financial and constitutional guarantees available to J&K under its own constitution and the constitution of India, while implementing the proposed Goods and Services Tax [GST] regime in the country.
Speaking at the meeting of Empowered Committee of State Finance Ministers held here today, Mr. Rather while explaining the issue said that the division of powers between the Union of India and the State of J&K is not at the same footing as it is in respect of other States on the matter of taxation.
The meeting was presided over by the Deputy Chief Minister of Bihar, who is also the chairman of the Empowered Committee of State Finance Ministers.
Mr. Rather said that J&K enjoys the special status under the Constitution of India and its constitutional relationship is governed by Article 370 of Constitution of India. He asserted that the stand of J&K has been agitated a number of times in the Empowered Committee and also before the Union Finance Minister and the concerns of J&K were appreciated by Empowered Committee and Government of India but nothing concrete appears to have been done so far. He strongly pleaded that the Standing Parliamentary Committee which is presently examining the 115th Constitutional Amendment Bill should listen to the views of various States before finalizing its recommendations.
The Chairman Empowered Committee assured the Minister that the matter would be taken up with the Standing Parliamentary Committee. He, however, advised that the States should also bring this to the notice of the Committee individually.
Mr. Rather also deliberated upon the issue of CST compensation to the States. He suggested that the States should very seriously pursue the matter with Government of India and meet Prime Minister Dr. Manmohan Singh for resolution of the issue in a time bound manner. However, he said, any confrontationist attitude on the part of States with the union should be avoided, at least prior to the meeting with Prime Minister of India.
Presenting the figures regarding collections of revenue, the Finance Minister J&K informed that the tax collections of the State have grown by 26 % during the first two months of this financial year as compared to the corresponding period of last fiscal. He explained that the overall growth in VAT/ Non VAT revenue for J&K has been of the order of 38 % which is one of the best in the country.
Some of the major issues discussed in the meeting include Constitutional Amendments Bill pending in Parliament and constitution of GSTN (Goods and Services Tax Network) company for introduction of the new legislation of GST in the country, taxation of services by way of a negative list, issues relating to CST compensation, Deviations in VAT rates and position of VAT/Non-VAT revenues in various States.
Kifayat Hussain Rizvi, Commissioner Commercial Taxes and P.I.Khateeb, Additional Commissioner Commercial Taxes also represented the J&K in the meeting.
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