West Bengal Chief Minister Mamata Banerjee on Wednesday wrote to Prime Minister Narendra Modi alleging that depriving states of GST compensation is against the spirit of cooperative federalism.
She urged the prime minister not to allow an “insufferable blow” to the federalist polity of the country.
“Therefore, I on behalf of my state and all the states, sincerely urge you not to belie the trust between the states and the Centre on matters of GST which has been held the world over as the finest example of cooperative federalism. I further urge upon you not to allow an insufferable blow to the federalist policy of our nation,” stated Mamata.
Pointing out that the states relinquished 70% of their taxing powers including the VAT regime to bring in the GST regime Mamata reminded Modi that as the chief minister of Gujarat he opposed the implementation of GST for several reasons.
She also referred to late Arun Jaitely’s comment that BJP was opposing GST implementation only because it doesn’t trust the Centre in “honouring compensation” of GST losses to the states.
“Today, his words are ringing in our ears as we are losing trust on the BJP government at the Centre in honouring the solemn promise of fully compensating GST losses to the states,” said Mamata.
She also said that the Centre must borrow at this critical juncture of the pandemic to meet the shortfall.
“The Centre must borrow to meet the shortfall of the Covid-19 pandemic and I am sure that the states will reciprocate in supporting a resolution that Cess collection continues beyond five years till the entire debt of the Centre is totally liquidated along with the entire interest payment cost,” said Mamata.