Chief Minister Siddaramaiah has expressed concern over Karnataka potentially losing ₹15,000 crore annually due to the Centre’s move to introduce two Goods and Services Tax (GST) slabs.
“Though we welcome rationalisation, revenue protection is our priority,” he said while speaking to reporters in Mysuru on Sunday before adding that a loss of ₹15,000 crore every year was a huge sum.
When the GST was introduced in 2017, compensation was to be provided to States for a period of five years. Now, with a growth in tax by about 12% to 13%, the amount should also be compensated for the State, he said.
He said Karnataka had suggested that a cess be levied on luxury goods that attract sin taxes like cigarettes, gutka, pan masala and luxury cars, and that compensation should be given to the States.
About eight States had already held a discussion in New Delhi on the proposed GST reforms, and Revenue Minister Krishna Byre Gowda will be attending the GST Council meeting scheduled for September 3 and 4, he said.
Mr. Siddaramaiah took exception to the failure of BJP MPs and Ministers from Karnataka to raise the issue of GST. He said the BJP MPs had never spoken about the injustice meted out to Karnataka by the Centre. “Instead, they are going on a pilgrimage to Dharmasthala and using the issue politically”, he said.
Reacting to the BJP’s plans to undertake a yatra to Dharmasthala, Mr. Siddaramaiah said that the saffron party had also welcomed the constitution of the Special Investigation Team (SIT) earlier, but was now resorting to politics for the sake of votes.
Making it clear that the government had constituted the SIT to bring out the truth, Mr. Siddaramaiah said that even Dharmadhikari Veerendra Heggade himself had welcomed the SIT.
If the SIT had not been constituted, Dharmasthala would have always remained under suspicion, the Chief Minister said, adding that the SIT was formed after the complainant gave a statement under Section 164 before the court, and several organisations had also demanded a probe.
In response to a question about the BJP’s demand for a high-level probe, Mr. Siddaramaiah said that there is no need for another investigation, according to him. He also asked whether the BJP had handed over any case to CBI when it was in power.
He said the SIT had been given complete freedom to investigate the matter and submit a report.
Referring to the yatra to Dharmasthala even by JD(S) while the investigation was still under way, Mr. Siddaramaiah said that all parties were undertaking the yatra in the name of religion. But it was necessary for the truth to be established and doubts cleared, he said.
