Indian Express : 7 June 2021
In the above Op-Ed that Minister Palanivel writes, he does make a powerful case indeed for reform of the GST (VAT) law of India. The graven of his argument is that the basis of sharing the central pool of tax-revenues collected by the Union (Federal) Govt. does no justice to States that contribute most to the pool whereas it provides for vastly disproportionate share to States that in fact contribute far less to thr central kitty.
So far Mr.Palanivel’s argument is flawless . The tune he sings is right.
But then the Minister says something that strikes a rather jarring note … he gets his rhythm suddenly go a tad awry. And that is when he writes this:
Quote:
“This is the scenario in which the “one state one vote” model (each state, regardless of its size or contribution to the GST pool has one vote in the GST Council) causes further grave injustice….. The “one state one vote” structure under GST is untenable and coming undone.
Unquote
I can’t help thinking thinking PTR is talking through his hat when he advocates the scrapping of the “one-state , one-vote principle” in the GST Council . He says he’s championing for the rights of states that contribute more to the central pool of taxes than other states in the country . That’s a feudal argument which smacks more of separatism than of federalism .
The Minister seems to have deficiently understood the federal concept that the “central pool of taxes” is an asset owned by the entire union of India . Every state of India has an equal stake in it. Every state therefore has a right of say in deciding how the asset must be used or disposed of. How much share of the pool each state must get is a different matter altogether but then the right to decide upon that mode of sharing or disposal in itself cannot be based other than on the fundamentally democratic principle of “one-state one-vote” …
If Mr Palanivel’s contentious view to scrap the “one-state one-vote” principle is to be accepted as good then nothing prevents it from being extended also to all forms of voting rights of legal ownership. Under Companies Act , to take only one example, every shareholder in a General Assembly has one vote irrespective of the size of his shareholding in the company . Are we going to now say it makes sense to change the law or principle there too by asserting that voting rights ought to be dependent on number of shares owned ?
Why don’t we go even further then and also demand extending the Minister’s view on the same principle to citizens electoral voting right also?! i.e. Those citizens who contribute more to the aggregate income-tax revenue-pool should be entitled to more votes than the only one at the ballot-box they presently have?
Small state or big state, Mr Palanivel, every State of the Union has to be treated as an equal citizen of India. Which is why the Goan State FM I feel was quite right in protesting your specious line of reasoning on the “one-state one-vote” matter at the last GST council meeting …
To my mind, while Mr Palanivel’s demand for a more rational system of revenue sharing of central collection of taxes with States inter alia is certainly justified, his shrill views about scrapping the “one-state one-vote” seems iniquitous, undemocratic … and above all unpatriotic.
Minister sir, you’d do well to please correct your “thappu thaaLam”.
Sudarshan Madabushi