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Patna,(BiharTimes): Deputy Chief Minister-cum-Finance Minister of Bihar, Sushil Kumar Modi, was on Monday elected the new chairman of the Empowered Committee of State Finance Ministers, which is spearheading the implementation of Goods and Services Tax (GST). |
He succeeded the former Finance Minister of West Bengal, Asim Dasgupta, who held the post for over a decade, that is, since the formation of the body. He had to go because the Left Front was voted out of power after 34 long years.
It needs to be recalled that the Committee had earlier overseen implementation of the Value Added Tax (VAT) system across the states.
Talking to reporters in New Delhi on Monday Union Finance Minister Pranab Mukherjee said
the substantive business of Monday’s meeting was the unanimous election as the chairman of the Empowered Committee of State Finance Ministers, Sushil Modi.
On Monday Finance Ministers of all the states were invited to New Delhi for the meeting
of the Empowered Group after a gap of almost five months.
Among other things, the major tasks before Modi would be to build a consensus on the proposed GST regime, which has been pending for years.
Earlier, Sushil Modi agreed to head the panel after the initial reluctance. The Union Finance Ministry managed to persuade him to accept the post. Reports from New Delhi suggested that the Union Finance Minister Pranab Mukherjee was keen on Modi taking over as the head of the Committee.
According to reports from New Delhi Modi's acceptance of the offer would considerably improve the Centre’s chances to build a consensus on GST, which aims to unify multiple indirect taxes imposed at the central and state levels.
With most state governments being led by the Congress or BJP, the Centre would find it easier to build a consensus on the GST Bill, which aims to cut business costs and boost tax revenues.
The Bill would require approval of two-thirds of Parliament and half of the 28 states to become law.
The GST Bill has been in trouble because of stiff opposition from BJP-ruled states, which say the structure of the tax regime and the constitutional changes required for its enforcement would erode states' fiscal autonomy. Now with Modi, himself a BJP leader, at the helm of the Empowered Group, the Centre hopes to neutralize much of this opposition.
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