Don't spread falsehood for political reasons: PTR on GST hike

CHENNAI: State Finance Minister Palanivel Thiaga Rajan on Saturday condemned people spreading misinformation about GST hike on pre-labeled and pre-packaged food items for political reasons. Thiaga Rajan also clarified that the Tamil Nadu government had opposed the GST hike at various levels.

In a clarification statement issued late Saturday, Thiaga Rajan recalled the constitution of a Group of Ministers (GoM) to simplify taxation and review the existing tax structure and increase tax revenue, as was decided in the 45th GST council, and said that Tamil Nadu was not a member of the GoM for which the Karnataka Chief Minister is the coordinator.

Clarifying that Tamil Nadu had informed the GST council on June 20 that the proposed tax hike was ‘unacceptable’ and the same was emphasised by TN officials in the Fitment Committee later, he said that the interim report of the GoM was tabled for approval at the 47th GST council meet held in Chandigarh on June 28 and 29 on condition that it should fully agreed or rejected.

“The interim report was accepted after discussion. Even the union finance minister had mentioned that decisions on taxation were made at three different levels. Truth being so, it is condemnable that a few people are spreading misinformation for political reasons, ” he added, reiterating that MPs of Tamil Nadu would emphasize the ill-effects of the tax hike imposed based on consensus between the union and states after TN’s opposition.