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.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Tarique Rahman sworn in as new Prime Minister of Bangladesh
Dhaka (PTI): Tarique Rahman was sworn in as the new Prime Minister of Bangladesh on Tuesday, days after leading his party to a forceful victory in the crucial general elections.
President Mohammed Shahabuddin administered the oath of office to 60-year-old Rahman at the South Plaza of the Jatiya Sangsad instead of Bangabhaban, in a departure from a long-standing tradition.
Earlier in the day, Rahman was elected as leader of the parliamentary party by the Bangladesh Nationalist Party lawmakers.
Rahman's BNP has bagged 209 out of 297 seats, while right-wing Jamaat-e-Islami secured 68 seats in the 13th Parliamentary elections. Deposed premier Sheikh Hasina's Awami League was barred from contesting polls.
