Mumbai: Shiv Sena chief Uddhav Thackeray on Thursday said his party will rethink over its support to the Goods and Service Tax (GST) if the autonomy of civic bodies is compromised.
“We have always been clear about the GST. The Sena will rethink about its stand if the civic bodies lose their autonomy and are forced to beg in front of the State and the Central government for their share of money,” said Mr. Thackeray. “This issue has to be clarified completely. Why should the civic bodies depend on the State or the Centre?”
Mr. Thackeray’s statement comes at a time when all municipal corporations, except Mumbai, are to face trouble over reimbursement of the abolished local body tax (LBT). According to sources in the State Finance Ministry, the Centre has refused to refund the amount and will reimburse only the existing taxes, such as octroi in Mumbai.
In a hurry to fulfil the poll promise, the State government abolished the LBT from all municipal corporations except Mumbai in 2015. To compensate these civic bodies, the government paid ₹3,290 crore in 2015-16 and ₹5,400 crore in 2016-17. It has estimated at least 10% growth and for 2017-18, ₹6,000 crore has been allotted.
The Centre has clarified that it will not repay this amount since this does not fall in any category of existing taxes. The money will now be a burden on the State who will have to pay it from its own resources. Mumbai, however, generates around ₹7,000 crore through octroi, which is likely to be reimbursed after the introduction of the GST.
A special session of the State Legislature to clear the GST Bill has been planned from May 20 to 22.
Second attack on BJP
Meanwhile, this is the second time that the Sena chief has provoked the BJP. On Wednesday, addressing his party members, Mr. Thackeray not only called the State government useless, it even challenged the BJP to announce mid-term polls. “Every now and then, they threaten others with mid-term polls. Do you think I am scared of it? Why don’t take it now. We are ready for it.”
