Sitharaman Writes To State FMs To Thank Them For Backing Reform

In a gesture underscoring the spirit of cooperative federalism, Union Finance Minister Nirmala Sitharaman has written to finance ministers of all states, expressing gratitude for their support and active role in helping implement the landmark overhaul of the goods and services tax (GST) regime.

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In an interview, Sitharaman said states made their view on the proposal to re-jig tax rates but ultimately agreed that it was for the benefit of the common man, an argument that helped reach a unanimous decision at the GST Council meeting earlier this week.

The overhaul, which will, from September 22, see rates of a wide swath of products -- from butter to chocolates and shampoos to tractors and air conditioners -- come down, was agreed at a meeting of the GST Council on September 3.

The panel is headed by Sitharaman and includes representatives of all states and Union Territories.

"Yesterday, I have written a letter to each finance minister thanking them, saying, you can have any number of intense discussion and argument, but finally, the Council rose to the occasion and gave relief to the people of India, to all people of India. And, I am grateful for that gesture."