Bengaluru: Allow the dilution of powers of Commercial Taxes departments of the states under the Goods and Service Taxes (GST) regime, urged JD(S) national president H D Deve Gowda in a letter to Prime Minister Narendra Modi.
The former PM stated in his letter to Modi that attempts were being made to empower Central Excise Department (CED) to administer the GST at the cost of Commercial Taxes departments of the states. Copies of Gowda’s letter were released to the media on Sunday.
According to him, the Commercial Tax departments in states have enough experience and have not only been administering goods but also services. “These departments are efficient in terms of their geography, language and pecuniary coverage of the assesses.
As a result of this, entrusting a larger role to Commercial Tax department in states is the only way to protect the expanding avenues of revenue which is badly needed for state welfare and infrastructural norms,” the former PM said.
The Prime Minister needs to foster the principles of true federalism and bolster fiscal autonomy of each state in the country. Therefore, the Union government must desist from entrusting complete responsibility of GST to the Central Excise Department (CED), stated Gowda in his letter.
