Himachal invokes Kyoto protocol to demand GST compensation from Centre

The state’s Technical Education Minister, Rajesh Dharmani, invoked the Kyoto Protocol and raised the issue of compensation, an official statement issued here said.

The Himachal Pradesh government on Saturday urged the Centre to make arrangements for hilly states in lieu of the revenue loss due to GST implementation and sought compensation on the pattern of the Kyoto Protocol.

The Kyoto Protocol, a global agreement signed in the Japanese city in 1997 with the aim to reduce carbon emissions, seeks to reward developing nations for adopting climate-friendly measures while prompting developed nations to cut greenhouse gas emissions to a targeted level every year. The state’s Technical Education Minister, Rajesh Dharmani, invoked the Kyoto Protocol and raised the issue of compensation, an official statement issued here said.

Speaking at the 55th meeting of the GST Council, held under the chairmanship of Union Finance Minister Nirmala Sitharaman in Jaisalmer, Rajasthan, Dharmani addressed the issue of GST compensation and urged the introduction of arrangements so that hilly states like Himachal could be compensated for revenue loss due to GST implementation. Dharmani, who led the state’s delegation in the meeting, also raised the issue of Rs 200 crore demand notices issued by CGST authorities to toll lessees of Himachal Pradesh. He emphasized that the Central GST department’s notices need to be annulled in view of the law position and requested further clarification on the matter, according to the statement.

Dharmani also advocated for exempting individual health and term insurance policies, especially for women, children, and senior citizens, from the GST levy. He also pitched for exempting GST on research and development expenses by public as well as private entrepreneurs for the initial ten to fifteen years. He called for the establishment of satellite towns in the state by introducing new provisions under the Forest Conservation Act and stated that the only way to establish such towns is by diverting forest land. The minister also stressed the need for funds for sewage treatment facilities in rural areas and urged the Union finance minister to increase the customs duty from 50 to 100 percent on the import of apples to protect the interests of apple growers.