HDK calls GST regime 'monster symbol' of curtailing states' financial autonomy

Bengaluru: Senior JDS leader H D Kumaraswamy on Saturday termed Goods and Services Tax (GST) regime as a ‘monster symbol’ of curtailing the financial autonomy of states in the federal system of governance.

The former chief minister alleged that the GST regime is aimed at diverting the revenues of states to the Centre.

On the fourth anniversary of GST, Kumaraswamy took a dig at the Centre in a series of tweets.

”The GST regime has stood like a monster symbol of curtailing the financial autonomy of states in the federal system of governance. The GST regime appears to be a financial system of nurturing the Centre by fleecing the states,” he tweeted.

Kumaraswamy stated that the Centre was celebrating the fourth anniversary of the GST regime because it has filled its stomach by snatching away the rights and freedom of the states with respect to taxes.

”The Centre, which had promised the states of compensating for losses while including them under the GST regime, has now gone back on its words. Should the states too celebrate the GST’s fourth anniversary for getting cheated on their tax resources?” Kumaraswamy asked.

Noting that Karnataka is yet to get a GST compensation of about Rs 9,000 crore, he said the state would have celebrated the occasion if it had got the compensation on this occasion of commemoration.

According to Kumaraswamy, compensation would have benefited the state as it has suffered from resource crunch due to the impact of COVID-19.

He alleged that instead of compensating for the losses on account of GST, the Centre is celebrating amidst the sufferings of states.

”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 the Congress and implemented by the BJP,” the JD(S) leader said.

He added that the GST regime has reduced the states to a position of begging the Centre for financial allocation and the states are also forced to take up a struggle against inclusion of petroleum products under GST.

Kumaraswamy claimed that the GST has failed to improve the lives of common people besides not even providing any boost to start-ups.

”There is nothing for the states as well as people to celebrate about the GST regime. It is merely a symbol of fascism of Congress and BJP,” the former CM alleged.