Friday, 23rd June, 2017

GST to be named Amma Tax to overcome opposition in Tamil Nadu: Govt

16, Jun 2016 By Albert Lobo

Madras: The central government has finally succeeded in breaking the GST puzzle in Tamil Nadu.  TN Chief Minister, Kumari Jayaalalitha has finally given a verbal acceptance to the bill after the visiting team agreed to name the GST as Amma Tax in Tamil Nadu with certain conditions.

Jayalalitha's reaction after tax was named after her
Jayalalitha’s reaction after tax was named after her

There were multiple proposals considered like, naming it as DMK Tax or Karuna Tax as suggested by the CM aides. However, the CM was keen on having the Amma brand instilled in the tax regime as well and agreed to this new branding of GST in the state.

Amma has also declared that GST component in the state for the poor will be covered by her government so that they are not overburdened by any taxes. This will require an additional 22,750 crores for Tamil Nadu in FY 2017-18 if GST comes into existence.  Appropriate policies and mechanisms will be put in place to make sure that the poor in Tamil Nadu will not have to pay any Amma Tax and this will be a Deepavali gift for her citizens.

Amma has also mentioned that she will take up this additional GST Subsidy requirements with the Prime Minister next month in their dinner date next month.  An option of giving GST subsidy or additional 500 TMC Cauvery water from Karnataka will be put across for the PM to decide. The option of milking out more water from Karnataka will be a great victory for TN people and will be cheered by one and all discarding party lines she stated.

After the last review on GST acceptance by the states, only Tamil Nadu was opposing it and Mr. Arun Jaitley was looking for ways to overcome this problem at hand before the parliament session. Now, Mr. Jaitley plans to use this “GST acceptance by all states” weapon to counter attack the Gandhis, who are adamant on sinking this GST bill, in the parliament with blessings of Amma.