Congress Demand for GST Cap in Bill is Absurd: Arun Jaitley

Jaitley said Congress party’s demand for putting a cap on tax rate in the Constitution Bill was preposterous. 

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India
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(L to R) Vikram Chandra (NDTV), Finance Minister Arun Jaitley, Nouriel Roubini, Professor of Economics and International Business, Leonard N Stern School of Business, New York University, USA, Sunil Bharti Mittal, Chairman, Bharti Enterprises, India seen during the session India and the World at the Annual Meeting 2016 of the World Economic Forum in Davos, Switzerland (Photo: PTI)

Finance Minister Arun Jaitley on Wednesday described opposition Congress party’s demand for putting a cap on tax rate in the Constitution Bill as preposterous, saying nowhere in the world tariffs are mentioned in the statute.

Three new propositions are now raised (by Congress) including a preposterous one that tariff must be mentioned in Constitution of India. Now if they can tell me that anywhere else in the world this happens that tariffs are mentioned in Constitution. So every time there is a drought, flood and you need to increase the tax rate, you have to first go to all states in India to change the tax rate. This is something which is just not possible.

Jaitley said tariff can ever be perpetual. He also said, “when the volumes go up it will come down, in crisis it may go up. And therefore the concept of cap didn’t strike either of your two finance ministers when your government was in power”.

Now if you are wiser just because you are in opposition, the situation has changed. What you have proposed on the file (during P Chidambaram’s tenure) I am quite willing to accept that.

He added that GST was certainly going to come.

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