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Business News/ Politics / Policy/  Fresh hope for GST as BJP reaches out to Congress
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Fresh hope for GST as BJP reaches out to Congress

The Congress, on its part, signals conditional support as opposed to its earlier stance of outright rejection

Mallikarjun Kharge said that GST bill has to be passed by both the houses of Parliament ‘separately’ and not by calling just a joint session. Photo: Hindustan TimesPremium
Mallikarjun Kharge said that GST bill has to be passed by both the houses of Parliament ‘separately’ and not by calling just a joint session. Photo: Hindustan Times

New Delhi: Hope of the goods and services tax (GST) obtaining legislative approval revived after the Bharatiya Janata Party (BJP) reached out to the Congress for convening a special session of Parliament next month.

The Congress has so far been steadfast in its opposition to the legislation, forcing the BJP-led National Democratic Alliance (NDA) to defer its passage in the just-concluded monsoon session of Parliament.

“The tax reform is crucial for the economy and we are making every effort to build consensus," parliamentary affairs minister M. Venkaiah Naidu told reporters on Tuesday immediately after his meeting with Mallikarjun Kharge, Congress leader in the Lok Sabha.

“The government may convene the second part of the monsoon session to pass key legislations after talking to political parties," Naidu said, adding that the government is going to Parliament with an ‘open mind’ and amendments, if any, can be approved on the floor of the House.

According to a Press Trust of India report, the monsoon session could be reconvened some time in September.

GST is considered the single biggest piece of tax reform and will, once in place, economically unify the country for the first time.

The Congress, on its part, signalled conditional support as opposed to its earlier stance of outright rejection.

“They (government) want to call a special session and they are consulting all parties, it seems. Unless we see what are the amended clauses or what is the agreement between the proposal of the standing committee and government, unless we see the final bill, we cannot comment on that," Kharge told reporters on Tuesday.

“The GST bill should be passed in both Houses separately. It cannot be called a joint session. I do not think they will call a session. For that also 14 days’ notice is required," he added.

Senior leaders in the NDA are worried that the crucial constitutional amendment bill will remain stuck in the upper House without the support of the Congress and the All India Anna Dravida Munnetra Kazhagam (AIADMK).

Prime Minister Narendra Modi has personally reached out to Tamil Nadu chief minister J. Jayalalithaa to convince the AIADMK chief to support the passage of the legislation. The AIADMK has 37 members in the Lok Sabha and 11 in the Rajya Sabha.

NDA has a total of 63 MPs in Rajya Sabha out of a total 245 members.

The ruling alliance needs at least 163 MPs for a two-thirds majority in the house.

Interestingly, parties on the same page as BJP are complaining that no senior member of the government has reached out to them.

“We have not been approached by the government. We support the GST bill but the government has to reach out to us," said a senior leader of the Biju Janata Dal (BJD).

The parties comprising the Janata Parivar also have a similar complaint, that none of the ministers in the government has approached them for talks.

“So far no one has come to us but if we are approached about the GST bill, we will be happy to cooperate for the special session," said Samajwadi Party national secretary Rajesh Dixit.

“No one in the government has spoken about the special session with us so far. Government should take the main opposition party into confidence. They should deal with the situation seriously and talk to different stakeholders. If they don’t do so, there is no use calling a special session," said Janata Dal (United) spokesperson K.C. Tyagi.

“It is clear that the government is now going ahead with the second part of the monsoon session which is not the same as the extension of a session. It is not very common and so it definitely shows the urgency of the government to pass the GST bill. One of the reasons for this urgency could be that the delay shows that the Narendra Modi-led government is not able to push through reform legislation," N.Bhaskara Rao, a New Delhi-based political analyst, said.

“There is a likelihood that the government will be able to pass the GST bill, when it reconvenes Parliament but clearing the land acquisition bill could still be a major roadblock," Rao added.

Srishti Gupta and Meenal Thakur of Mint and PTI contributed to the story.

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Published: 25 Aug 2015, 03:19 PM IST
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