The Congress on Wednesday alleged that the Narendra Modi government has unleashed “tax terrorism” by surreptitiously bringing the Goods and Services Tax Network (GSTN) under the Prevention of Money Laundering Act (PMLA).
The move will be used to threaten trade and industry leaders who do not toe the government line, or are affiliated to the Opposition or have an independent voice, the principal opposition party alleged.
Tax terrorism
“Bringing GSTN under PMLA is the means by which the Modi Government plans to practice, promote and propagate tax terrorism,” senior leader Abhishek Singhvi said while addressing a press conference at the All India Congress Committee (AICC) headquarters.
“The triplet tactic of constraint, compulsion and coercion by the BJP through the new law will wreak havoc on the business community in India. This is another tactic by the BJP to intimidate, incarcerate and imprison opposition leaders just ahead of the General Elections,” Mr Singhvi added.
He said a July 7 notification of the Finance Ministry, that amends an earlier 2006 notification, will facilitate sharing of information between the GSTN, Enforcement Directorate (ED) and other investigative agencies. Changes have been made in provisions under Section 66 of the PMLA, which provides for disclosure of information, Mr Singhvi said.
Timing suspicious
“Why was such a new law introduced when there is less than a year left for the General Elections?
Is this a way of settling political scores? Or a way to suppress grassroots funders of opposition parties?”asked the Congress spokesperson.
Mr Singhvi questioned the introduction of such an important new law without a debate in Prliament and pointed out that as many as nine States opposed it at the 50th GST Council meeting on Tuesday.
“The fact that the GSTN was brought under the PMLA (section 66), through a gazette notification of the Finance Ministry on July 7th,2023, without any discussion or debate in Parliament raises legitimate apprehensions”, he said, adding, “even the GST Council members were blindsided and raised their voices in protest at this move”.
