GST a 'monster symbol' of curtailing financial autonomy: HDK

GST a 'monster symbol' of curtailing financial autonomy: HDK

Bengaluru: Former Karnataka Chief Minister H D Kumaraswamy termed the Goods and Services Tax regime as a 'monster symbol' of curtailing the financial autonomy of states in federal system of governance.

Kumaraswamy tweeted that the Centre is celebrating the fourth anniversary of the GST regime. Yes, the Centre has to celebrate the occasion as it has filled its stomach by snatching away the rights and freedom of the states with respect to taxes.

He questioned the Centre, " Should the states too celebrate the GST’s fourth anniversary for getting cheated on their tax resources?"

He said Karnataka would have celebrated the occasion if it had got about Rs. 9,000 crore compensation on this occasion of the commemoration.

He suggested that the compensation would have benefited the state as it has suffered from a resource crunch due to the impact of COVID-19.

Kumaraswamy further alleged that the main intention of the GST regime is to divert the revenues of states to the Centre so that states would have to sheepishly stand before the Centre like slaves to seek financial allocation. This system of slavery was evolved by Congress and implemented by the BJP.

Now it has reduced the states to a position of begging the Centre for financial allocation. The states are also forced to take up a struggle against the inclusion of petroleum products under GST.

While the states are suffering on account of snatching away their revenue share due to GST, the new regime has also failed to better the lives of common people. It has not even provided any boost to startups either.

Entrepreneurs and business people, common people have suffered due to snatching away of resources, according to Kumarswamy.