Jayalalithaa joins Mamata Banerjee over 'arbitrary' action in reducing Central Sales Tax

April 14, 2012

jaya

Chennai, April 14: Joining her West Bengal counterpart Mamata Banerjee, Tamil Nadu chief minister J Jayalalithaa today attacked the Centre for its "arbitrary" action in reducing Central Sales Tax (CST) compensation to states by linking it with VAT rate revision.

Though the Centre had agreed to compensate states for the revenue loss for 2010-11 also, the eligible compensation was "arbitrarily restricted" by deducting additional revenue realised through revision of VAT rate from four to five per cent, she said in a letter to Prime Minister Manmohan Singh.

"I would like to point out that the action of the Government of India in linking CST compensation with the additional revenue on account of VAT rate revision is unilateral, arbitrary and untenable. There is no link between CST rate reduction and VAT rate enhancement. It was never a part of the guidelines for CST compensation," she said.

Mamata had shot off a letter to Singh on Wednesday protesting the Centre's "unilateral decision" not to pay CST compensation to states for 2011-12.

The decision to stop CST compensation for 2011-12 "is equally objectionable", Jayalalithaa said, adding the CST rate was reduced only as a precursor to the introduction of Goods and Service Tax (GST).

"Since it is the government of India's responsibility to introduce GST by evolving a consensus and by putting in place appropriate mechanisms, the States cannot be expected to bear the loss on account of its failure to introduce GST. The Government of India has a moral responsibility to compensate the States till GST is introduced," she said.

Non-implementation of GST from April 1, 2010, should not be taken as ground to stop CST compensation and the Centre has to provide compensation till GST is introduced as revenue loss suffered by states is substantial and permanent, she said.

The chief minister said though the Centre had agreed to compensate states for revenue loss for 2010-11 also, the eligible compensation for 2010-11 was "arbitrarily" restricted by deducting additional revenue realised through revision of Value Added Tax rate from four per cent to five per cent.

" ... the action of the Government of India in linking CST compensation with the additional revenue on account of VAT rate revision is unilateral, arbitrary and untenable. There is no link between CST rate reduction and VAT rate enhancement. It was never a part of the guidelines for CST compensation," Jayalalithaa said.

Secondly, she said, the decision to stop CST compensation from 2011-12 is "equally objectionable".

Noting that states like Tamil Nadu suffer huge revenue loss on account of CST rate reduction, Jayalalithaa said Tamil Nadu could have realised an additional revenue of Rs 2,000 crore between 2007-08 and 2010-11, even after taking into account the Centre's compensation.

This tax loss pushed back the revenue base to a lower level and the state continues to suffer incremental revenue loss which is in the range of Rs 1,500 crore to Rs 2,000 crore per annum in the next three years, she said.

"I must also point out that such unilateral and unreasonable actions by the Government of India do not augur well for fostering a spirit of cooperative federalism especially at a time when the Government of India is trying to build a consensus among the states for GST," she said.

She said revision of VAT rate from four per cent to five per cent should not be linked to the CST compensation for 2010-11 as it was not part of the original compensation package and the VAT revision had nothing to do with the CST.

"If further delay is expected in implementing GST, then the CST rate must be restored immediately to the original four per cent," Jayalalithaa said.

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Agencies
May 12,2020

New Delhi, May 13: Prime Minister Narendra on Tuesday announced Rs 20 lakh crore special economic package for the country to be 'self-reliant' and deal with COVID-19.

"I announce a special economic package today. This will play an important role in the 'Atmanirbhar Bharat Abhiyan.' The announcements made by the government over COVID, decisions of RBI and today's package totals to Rs 20 lakh crore. This is 10 per cent of India's GDP," said Prime Minister Modi in his address to the nation. The Prime Minister said that humanity would not accept defeat from the coronavirus but the people have to stay safe and move forward.

"We had never seen or heard about such a crisis ever before. This is definitely unimaginable for mankind. It is unprecedented. But humanity will not accept defeat from this virus. We have to not only protect ourselves but also move forward," he said.

Talking about the gravity of the virus, Modi said: "It has been four months the world is fighting COVID-19. More than 42 lakh people from different countries have been infected by COVID-19. More than 2.75 lakh people have lost their lives due to the virus. In India too many families have lost their dear ones, I express my condolences to them."

"Today when the entire world is in crisis, we will have to further firm our resolve," he added.

The Prime Minister on Monday held a video conference meeting with Chief Ministers of all states to discuss the road ahead in India's fight against COVID-19 and noted that he was of the firm view that measures needed during the third phase of lockdown will not be needed in the fourth phase.

Prime Minister Modi had said the need was to reduce the transmission rate of the disease and to increase public activity gradually while adhering to all the guidelines and efforts to be made towards achieving both these objectives.

The phase three of the lockdown is coming to an end on May 17.

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News Network
January 1,2020

New Delhi, Jan 1: The new Army chief Lieutenant General MM Naravane on Wednesday said that India needs to pay more attention to its border along China and asserted that the force is capable of dealing with any security challenge.

"We have been giving attention to our western front in the past. The northern front now also requires an equal amount of attention... The Army is capable of tackling any dangers to the country," General Naravane told reporters after receiving the first Guard of Honour as the Army chief.

"In that context, we are now going in for capability development and enhancement of our capacities even in our northern borders which includes the northeastern part of our country," he said.

On the border dispute with China, the Army chief said that continuing peace along the border will pave the way for a solution.

He said: "We have been able to maintain peace and tranquility along borders and I'm sure that situation will prevail. By maintaining this, we will be able to set the stage for the eventual solution."

General Naravane said that operational readiness and modernisation will be among the top priorities of the Army under his leadership.

"Our priority will be to be ready to meet any challenge and to be operationally prepared at all times. This will happen as a result of modernisation. We will continue to build our capability especially in the North and Northeast region of our country," he said.

He said that the Indian Army will pay special attention to respect human rights. "We will also pay special emphasis on raising security awareness among ranks and file and pay special attention to respect human rights," the Army chief said.

Assuring the country on security, he said, "All three services — the Army, the Navy and the Air Force — are ready to defend the country."

He extended wishes to people in the new year and hoped that the country will make huge progress in this decade.

General Naravane took over as the 28th Chief of the Army Staff (COAS) on Tuesday, succeeding General Bipin Rawat who has become India's first Chief of Defence Staff (CDS).

General Naravane was previously the Vice Chief of Army Staff.

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Agencies
January 16,2020

New Delhi, Jan 16: Chief of Defence Staff (CDS) General Bipin Rawat on Thursday said that he supported a negotiated peace deal between the US and Taliban in Afghanistan.

Gen. Rawat was speaking along with other world leaders at Raisina dialogue organised by India's influential think-tank Observer Research Foundation (ORF).

Arguing that terrorism was going to stay in the world as long as states were going to use it against other states, he said it was important to prevent states from using terrorism as a "proxy war".

"The only way to deal with it was what the US did post 9/11," he said, adding that the war against terror was necessary.

However, now a peace deal with Taliban is required, Gen. Rawat said.

"It must be a negotiated peace deal so that the Taliban stops using terrorism," he added. Hinting that the US should maintain its presence in Afghanistan, the CDS said that though Afghan security forces are now equipped to fight back terror groups in Afghanistan but they still need support.

The newly appointed CDS officially confirmed that India has shifted its stance on Taliban. India has traditionally been opposed to the Pakistan-backed Taliban in Afghanistan. Thousands of Afghans were given refuge in India when they fled the country due to oppression and terrorism of the Taliban regime. India is in alignment with the democratically elected government in Kabul that the Taliban remains supported by Pakistan.

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