CHENNAI: Union finance minister Nirmala Sitharaman on Thursday defended the Modi govt’s record in sharing financial powers with the states by stating that it is respectful of the federal system.
Speaking at an event at the Revenue Bar Association of Chennai, Sitharaman said the entire process of the implementation of the Goods and Services Tax (GST) and redressing dispute post GST rollout should stand as a testimony to govt’s respect for the federal system.
“The federal structure has to be respected and taken together if you want to have a taxation system where revenue generation happens without pain on the taxpayers. But revenue generation happens in order that both Centre and states can work together,” she said, adding both should work towards widening the tax base. “It is the spirit with which the govt works,” she added.
The minister denied that there was a bitterness and friction in the Centre-state relationship in the tax matters and called it the rhetoric of the opposition leaders. “I see what’s happening in the GST Council. People belonging to the different political parties are working together,” Sitharaman said.
“Revenue is the last consideration of the govt in budget consultation, but simplifying and easing compliance comes first,” she said.
The minister said the spirit should be both of the Center and the states working to address tax evasion and improving compliance. “This is what guides GST meetings,” she said.
Speaking at an event at the Revenue Bar Association of Chennai, Sitharaman said the entire process of the implementation of the Goods and Services Tax (GST) and redressing dispute post GST rollout should stand as a testimony to govt’s respect for the federal system.
“The federal structure has to be respected and taken together if you want to have a taxation system where revenue generation happens without pain on the taxpayers. But revenue generation happens in order that both Centre and states can work together,” she said, adding both should work towards widening the tax base. “It is the spirit with which the govt works,” she added.
The minister denied that there was a bitterness and friction in the Centre-state relationship in the tax matters and called it the rhetoric of the opposition leaders. “I see what’s happening in the GST Council. People belonging to the different political parties are working together,” Sitharaman said.
“Revenue is the last consideration of the govt in budget consultation, but simplifying and easing compliance comes first,” she said.
The minister said the spirit should be both of the Center and the states working to address tax evasion and improving compliance. “This is what guides GST meetings,” she said.