Letters: Under the scanner

This refers to the report, "Scrapping of inter-state trade tax under scanner"( July 26).

The provision of a one per cent additional tax on the supply of goods was added to the goods and services tax (GST) Bill on the insistence of states that are pioneers in manufacturing, as they felt they needed to be "compensated" for their investment in infrastructure. The Opposition cannot be faulted for opposing such a provision that intends to add piecemeal levies to a consolidated tax.

However, it does deserve criticism for throwing spanners in the works by arguing for an 18 per cent ceiling as a "reasonable, moderate and adequately revenue-generating GST rate". Such a provision can constrain the government's ability to collect larger revenues. The Congress' demand for a judicial appellate body for dispute arbitration should be addressed through political negotiation.

The GST Bill is a landmark legislation that can potentially transform the tax structure by subsuming all indirect taxes and creating a single market. Instead of stonewalling this, the political class must rise above partisan considerations and debate the Bill in the House.

Shreyans Jain, New Delhi

Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number