Even as the Maharashtra legislature has unanimously ratified the Goods and Services Tax (GST) Bill, the Shiv Sena sought to warn the government that those who have tried to levy the taxation system could never return to power again.
“One harsh reality is that countries that had accepted the GST had to repeal it subsequently as the taxation system had failed. Also, governments that have imposed this form of taxation have never come to power again as they have miserably lost elections,” said an editorial in Sena mouthpiece ‘Saamana’.
The ruling alliance partner in the state said along with it, leaders of other political parties too have expressed apprehensions about the autonomy of the Brihanmumbai Municipal Corporation (BMC) after the GST comes into effect.
“BMC will suffer an annual revenue loss of around Rs. 7,000-8,000 crore. This may cause a financial imbalance to Mumbai and the city, which generates the maximum revenue for the country, may become dependent on the Centre for money,” it said.
The Sena questioned whether imposing GST was “another attempt” by the Centre to make Mumbai “financially dependent on it”.
“These apprehensions cannot just be thwarted off by mere words. Though the Chief Minister has assured that there would be no revenue loss to the state exchequer, the BMC will not have to depend on the Centre or, there will no loss of autonomy to the BMC. As far as Mumbai is concerned, we have to be extra careful,” it said.
The state government on Monday unanimously ratified the GST Constitutional Amendment Bill, joining a clutch of states which have already approved the legislation that will pave the way for roll-out of a single and unified tax system in the country.