Any new initiative will face problems: VP Naidu on GST

Chennai: Terming GST as a path breaking measure of the government, Vice-President M Venkaiah Naidu on Tuesday said any new initiative will face problems but said the focus should now be on implementation of the tax reform and making it more people friendly.

"Any new legislation, any tranformation, there will be some problem and there are problems, how can anybody deny, the debate is on... let it go on," he said.

Once having agreed to GST, "now only think about implementing it and how to make it more effective and more people friendly and that is the idea."

Stating that none should worry about criticism, he said the debate, however, needs to be "meaningul and purposeful.

Addressing the 90th anniversary celebrations of Andhra Chamber of Commerce, he said the implementation of GST was a collective decision of all political parties and recalled his days as Minister for Parliamentary Affairs when he had mobilised support for the new tax law.

On demonetisation, he said "we have to wage a war against corruption and we have to end black money and one idea was this."

"If others have other good ideas (to end graft and black money), "give ideas" to the government and "tell people that they (government) have gone wrong and we will come to power and we will do this."

Naidu said the debate should be on those lines rather than opposing while in the opposition and proposing while in government. "it is not a correct thing for democracy."

Corruption was eating into the vitals of the system at various levels, he said, adding that he was not referring to any particular party's regime "as it was not my responsibility now" and demonetisation was one step to end it.

He said initiatives like "Save the girl child" of the government should be regarded as "national programmes" and "people's programmes" and not as one of any particular party.

In such initiatives there was nothing about party politics.

Hyderabad: Former Union Minister S Jaipal Reddy on Tuesday said petrol and diesel should be brought under the ambit of Goods and Services Tax (GST) for better "predictability" of prices.

Echoing views expressed by Dharmendra Pradhan, Union Minister of Petroleum and Natural Gas earlier, Reddy said state governments should reduce their VAT on the fossil fuel.

"I support the demand that the state government(s) must also decrease their tax. But while increasing their own tax and increasing the rate, they (the Centre) is trying to pass on the burden or blame to the states," Reddy, a former Minister of Petroleum and Natural Gas, told reporters here.

Pradhan had earlier indicated that he was requesting the Finance Minister and GST Council to bring petrol and diesel under the GST purview.

Pradhan had recently urged all states to reduce VAT on the fuel in their respective states so as to bring down the prices.

"I am for bringing the petroleum products under GST so that there is predictability for the consumer and for the economy," Reddy said. He also opined that considering the current international crude oil prices the petrol prices should be around Rs 40. He said when the UPA was in power in 2008, the international crude prices were at USD 140 and after he became the Minister it was USD 110. Now it is hovering around USD 50 or USD 54 for so long time. Though the current pricing scenario is "boon" to a country like India which is net importer of oil, it has become a "curse" due to the actions of present NDA government, Reddy said.

"It is a boon from the international market. But they (Modi Government) has converted it into a curse on people," he said.

According to Reddy, fiscal deficit that, otherwise, would have been caused by "losses" due to GST implementation and demonetisation was offset by the revenue that it got by levying extra taxes on petrol and diesel. He said the Centre has been collecting Rs two lakh crore per annum from consumers towards taxes on petrol and diesel totaling to about Rs six lakh crore during the past three years.

Reacting to the reported left out of Taj Mahal from the UP s official tourism booklet, the Congress veteran demanded that the Prime Minister Narendra Modi should make his stand clear on the issue.

"The Prime Minister should respond on the these baseless remarks. Taj Mahal is one of the seven wonders of the world. There is no relation between culture and religion. I call upon Prime Minister Modi to make his stand clear on the question of Taj Mahal," Reddy demanded.