GST may run into Shiv Sena roadblock

The Bharatiya Janata Party’s (BJP) saffron ally at the Centre and in the state, Shiv Sena, is all set to give it a tough time over the Goods and Services Tax (GST) Bill in Parliament.

The Sena has suggested amendments in certain clauses of the bill so that the sovereignty of the elected local body is maintained.

The major amendments include that compensation be received in the Brihanmumbai Municipal Corporation’s (BMC) treasury and avoiding transactions via the state exchequer. The Sena will raise its demands in a debate over the GST Bill, a Sena MP confirmed.

Passage of the crucial GST Bill in the ongoing Monsoon Session of Parliament is a top priority of the Narendra Modi government, and for this purpose, parliamentary affairs minister Venkaiah Naidu and finance minister Arun Jaitley met all party leaders to arrive at a consensus over the bill.

According to Arvind Sawant, a Sena MP, his party chief had insisted that independent existence of the BMC should be maintained, even after GST is implemented.

“We do not want to beg for our own share of compensation in lieu of octroi from the state government,” said Mr Sawant.

“We have suggested amendments in the GST Bill and will raise our points during the debate,” he added.

The crucial GST Bill is likely to come up for passage on the last week of the Monsoon Session. The Parliament session will conclude on August 12.

During informal talk with select media at party office Shivalaya, Shiv Sena chief Uddhav Thackeray said his party did not want to oppose GST, but it was concerned about how to conduct the day-to-day business of BMC, if the octroi is eliminated.

“The annual tax collected by the BMC from octroi is around Rs 7,000 crore. It will be difficult if its prime income resource is stopped,” he said.

The Centre should therefore allocate compensation every quarter in advance and it should be deposited directly in the BMC treasury, he added.

“Also, I have reservations about letting a goods truck pass into the state without a check. Currently, each truck has to go through checks at the octroi booth. It will be a threat to national security if vehicles are allowed to pass without checking,” Mr Thackeray said.

He said the BMC should get 100 per cent compensation in lieu of octroi.