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Kerala govt, CPM changing stance on GST

The state government and the ruling Communist Party of India (Marxist) (CPM) are changing their stance on the Goods and Services Tax (GST) regime in the face of criticism within the party and the Left Democratic Front (LDF).

The CPM is of the serious opinion that continuing support to the new tax regime would evoke public sentiment against the government and the LDF. Finance minister T M Thomas Isaac, who had said that the GST would be beneficial to a consumer State like Kerala, too, is facing criticism at the party conferences.

Isaac blames it on the flaws in the implementation of GST. He had reported the intensity of the financial crisis in the State at the party secretariat and explained the reasons for the fall in tax revenue.

The state secretariat felt that time has come to dispel the public notion that the state government and the CPM are supporting the Center on the tax issue. On failing to launch a campaign that the onus for the post GST crisis is on the Center, it would affect the government and the LDF, the party leadership felt.

When the CPM central leadership decided to oppose GST, the LDF government exuded the confidence that the new tax regime would be beneficial to the state.

This prompted the national leadership to give a concession to Kerala. Still, it directed Isaac and the finance minister of Tripura to abstain from the GST declaration meeting organized by the Center.

When the CPM central leadership called upon the state units to organize a protest against GST, it did not relinquish hope in the case of Kerala.

Source- Manorama.