Roll out of Goods and Services Tax (GST) has been thoroughly jeopardized by the centre’s abrupt demonetization drive, said Amit Mitra.
He added that April rollout of the tax seems unfeasible now and he will talk to other Finance Ministers about revisiting support for a reform seen as crucial for economic growth.
“The government needs to redo its arithmetic,” he said, suggesting that the government’s April deadline for introducing GST now seems doubtful. He said the centre “should do GST at a time when it’s feasible,” adding, “I don’t see that at this time, as a student of economics.”
Economists including former Prime Minister Manmohan Singh have said that economic growth is likely to shrink by at least 2 per cent on account of the notes ban.
Trashing the notes ban as a “tectonic” hit, Mr Mitra said, “I’m deeply concerned about timing of the GST. People are talking about a recession. A 2 per cent fall in GDP is serious, (so) can GST happen?” He said he will reach out to Finance Ministers of other states to collate concerns about how their revenue is being affected.
Government needs to pass GST bills in winter session for a smooth April roll out. Any delay could hit hard.