Mamata Banerjee (File photo)
KOLKATA: Depriving states of goods and services tax (GST) offset is “attempt to undermine federalism”, West Bengal Chief Minister Mamata banerjee he said in a letter to Prime Minister Narendra Modi on Wednesday.
Urging the prime minister not to undermine the trust between the states and the Center on the issue, Banerjee asked him “not to allow an unbearable blow to the nation’s federalist policy by depriving the states of GST compensation.”
“I am deeply distressed by the mess of the GST which amounts to a betrayal of the trust and moral responsibility of the Indian government towards the states, violating the very premise of federalism.
“This is a sham and abrogation of the fundamental basis on which the states gave up 70 percent of their taxing powers, including the entire VAT regime, to initiate the GST regime,” Banerjee said in the four-page letter. .
The prime minister added that the “agreed formula” for relinquishing tax powers was the promise of full compensation for the shortfall in GST revenue for five years.
.
