PTR defends TN, replies to FinMin Nirmala Sitharaman's Parliament speech

CHENNAI: Finance Minister Palanivel Thiaga Rajan (PTR), in a press release on Tuesday, requested the Centre to reduce its taxes as it had the “opportunity and resources to help the common man”. He issued the statement to ‘offer explanation’ to Union Finance Minister Nirmala Sitharaman’s speech in Parliament on Monday justifying the imposition of the tax. 

PTR said Centre’s levies on petrol went up substantially in seven years, and though its revenue increased by several lakh crores of rupees, there had not been a matching increase in States’ revenue. Pointing out that TN had sent written objections to the Centre over imposing 5% GST on food items, he said there were inherent issues in the structure  and design of the GST council.

“The Union government has a voting right of 33% (in the GST Council) and all the other States have 2% each. All States have only 2%, whether it is a big State or a small State. In such a structure, if any decision regarding GST tax imposition is to be stopped by the State government, it requires the full support of 25 States or the support of the Union government,” the statement said. 

The report containing the recommendations of tax imposition that was placed before the council had to be either accepted or rejected in its entirety. The interim report of the Group of Ministers that had 56 recommendations was accepted by the council. More on state revenue, he said: “... Tamil Nadu did not get its due share in successive Finance Commissions and the share for the State has continuously decreased.”