Karnataka will lose revenue but welcomes GST reforms: CM Siddaramaiah
Bengaluru: Chief Minister Siddaramaiah has said that Karnataka is likely to lose between Rs 15,000 crore and Rs 20,000 crore annually due to the recent reforms in the Goods and Services Tax (GST) system. However, he added that the state government supports the decision in the larger interest of the people.
In a statement issued on Friday, Siddaramaiah welcomed the GST Council’s move to simplify the system, saying it would reduce the burden on taxpayers and traders while cutting down on procedural hurdles. At the same time, he demanded that the Union Government release Karnataka’s rightful share from the GST compensation cess, which is still being collected.
“This is not some new invention of the Narendra Modi government. When the flawed GST was hurriedly introduced by the NDA in 2017, opposition leaders including Rahul Gandhi had already called for essential corrections,” Siddaramaiah said.
He recalled how the Congress had repeatedly warned that the so-called “Gabbar Singh Tax” would ruin small traders by imposing heavy compliance costs and pushing them into financial hardship. “For the last eight years, we kept raising this issue, but the Prime Minister chose to ignore it,” he remarked.
The Chief Minister expressed concern that the GST system leaves states with little power. While the Centre holds one-third of the voting rights, the states together have two-thirds. Any reform requires a three-fourths majority, which gives the Union Government the power to block changes despite opposition from all states, he explained.
According to him, the Modi government has been using this authority to stall reforms for the last eight years. “The Centre’s support for the current reforms is not because of concern for the people, but because of mounting pressure from the states,” Siddaramaiah said.
He further added that if the reforms had been implemented earlier, citizens would not have suffered under the burden of a complicated tax regime. “It is now the responsibility of the Union Government and the Central Board of Indirect Taxes and Customs (CBIC) to ensure that the benefits of these reforms actually reach the people,” he stated.
Siddaramaiah also urged the Centre to prevent traders and companies from misusing the new system for excess profits. He said the state government remains committed to strengthening people’s purchasing power, expanding the tax-paying base, and driving inclusive economic growth so that prosperity is shared by all.
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Road crash in UP leaves 10 dead
Lakhimpur Kheri (UP) (PTI): Ten people were killed when a van collided head-on with a truck on the Sisaiya-Lakhimpur national highway on Monday, police said.
The van was going to Sisaiya from Lakhimpur when the accident took place between Unchgaon and Bharehta villages.
Circle Officer of Dhaurahra, Shamsher Bahadur Singh, said all nine passengers travelling in the van and the driver were killed.
District Magistrate of Lakhimpur Kheri Anjani Kumar Singh told reporters that the van collided with a truck coming from the opposite direction, leading to nine casualties on the spot, while one succumbed to injuries at the district hospital.
Circle Officer, Dhaurahra, Shamsher Bahadur Singh told PTI, "Efforts are on to establish the identity of other deceased persons."
The seven of the deceased have been identified as Jaideep Singh (25), Pawan (23), Sohan (21), Ram Goyal (42), Sahajram (35), Pappu (18), all residents of Bahraich district and Adnan Khan (15), a resident of Lakhimpur Kheri district, police said.
Condoling the loss of lives in the accident, Uttar Pradesh Chief Minister Yogi Adityanath in a post on X, said, "The loss of life in the unfortunate road accident in Lakhimpur Kheri district is deeply distressing and heart-wrenching. My condolences are with the bereaved families."
"I have directed the local administration to provide prompt and adequate assistance to the injured and the victims. I pray to Lord Shri Ram to grant the departed souls a place at His divine feet and to bestow a speedy recovery upon the injured," Adityanath said on X.
Deputy Chief Minister Keshav Prasad Maurya and Brajesh Pathak too condoled the loss of lives in the accident.
"The loss of lives resulting from the road accident in Lakhimpur Kheri district is deeply tragic and heart-wrenching. My deepest condolences go out to the bereaved families," Maurya said.
