GST will end tax terrorism, says PM Narendra Modi

PM Narendra Modi

New Delhi: Expressing gratitude to all parties for support, PM Narendra Modi yesterday described GST as a "crucial step" towards ending tax terrorism besides reducing corruption and black money and said the new regime of indirect taxation will make consumer the "king".

PM Narendra Modi in the the Lok Sabha yesterday. Pic/PTI

Intervening in a debate on Constitution (122nd Amendment) Bill, Modi asserted that the GST will benefit mainly those states which are considered backward and address the problem of imbalanced development. He acknowledged that manufacturing states will suffer losses but said they will be compensated.

"August 8th marks a crucial step towards freedom from tax terrorism," Modi said, while recalling that this was the day in 1942 when Mahatma Gandhi had sounded the bugle of ‘Quit India' which marked a major step towards the country's Independence. "GST can't be seen as a victory of a party or government. It is the victory for democratic ethos of India and a victory for everyone," he said, while noting that the measure was being supported by all parties, irrespective of different ideologies.

Meanwhile, barring AIADMK, all political parties yesterday supported the GST Constitution Amendment Bill in the Lok Sabha but asked the government to ensure that there is no adverse fallout on inflation and that states have some say in deciding the tax rate.