In a bid to emphasise “consensual“ support to GST, PMO wrote to all chief ministers and leaders of national and recognised parties that the “gigantic task“ has been achieved with the cooperation of all states and political parties.
“The Union Cabinet which met on June 22, 2017, acknowledged their contribution and expressed its gratitude to the chief ministers of all states, the GST council, heads of national and state level recognised parties, all MPs and members of state legislatures,“ Modi has written to the CMs. The PMO letter comes around the time that opposition parties Congress, Trinamool and Left have decided against attending the midnight launch of the major tax reform on June 30. “This is a momentous occasion and marks the culmination of many years of preparation,“ it states. The letter notes that GST will not only create a unified national market but would also also prevent cascading of taxes, boost manufacturing activities and exports, generate more employment, and thus improve the overall investment climate in the country.
The PMO communication expresses the hope of more moderate taxes, saying “Moreover, the average tax burden would come down and this will benefit the common man.“
The recipients of the letter have been given a copy of the Cabinet resolution with the request that the Centre's appreciation be communicated to all ministers and legislators. A slightly briefer version of the letter has been sent to chief secretaries of states as well.
The Cabinet resolution states that “GST is a shining example of national integration and of fiscal federalism at its best. It has been made possible with the close cooperation between the central government and all state governments as well as parties.“