KM Mani, Finance Minister of Kerala and the newly appointed Chairman of the Empowered Committee of State Finance Ministers on the Goods and Services Tax (GST), says that Prime Minister Narendra Modi has promised to take up the Constitution Amendment Bill for the tax on a priority basis.

Mani said pending issues related to GST will be discussed during the committee’s meeting to be held in Thiruvananthapuram on May 7 and 8. Edited excerpts from an interview:

Are you optimistic about the Constitutional Amendment Bill being taken up during the current session of Parliament?

There is no cause for pessimism because there is a general consensus on it. I think most States welcome the GST Bill, as there is only advantage (for them) in passing it.

States with manufacturing industries, such as Maharashtra and Gujarat, have called for raising additional tax from the proposed 1 per cent. What is your view?

There was a proposal of 1 per cent, but they want more. Anyway, that can be sorted out.

What about tobacco? Some States say they should be allowed to levy tax on tobacco after GST is implemented…

All these issues have to be discussed and sorted out equitably. That (tobacco) may be their main source of income, which could be the reason behind this demand.

What about petroleum and alcohol?

See, for Kerala, the major income is from alcohol. Therefore, we will want alcohol to be kept out of GST. These are State-specific interests.

What about a revenue neutral rate? There was a suggestion to keep it at 27 per cent. What is your view?

We have to discuss this and get opinions from States and then evolve a consensus. I cannot say now whether it should be lower or higher than 27 per cent.

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