Finance Minister Jaswant Singh was forced on the backfoot over the value-added tax again by sharp queries from MPs at the BJP parliamentary party meeting and at a meeting with BJP representatives of the All-India Udyog Vypar Mandal.
At the parliamentary party meeting, chaired by Deputy Prime Minister L K Advani, discussion on the BJP's electoral future receded to the background as MPs from Delhi and Gujarat raised objections on VAT.
Advani and BJP chief M Venkaiah Naidu's attempts at drawing the attention of the gathering to the party's future proved futile as MPs sought clarifications on VAT.
Even Naidu's raising the issue of a legislation against cow slaughter--a core Hindutva issue--could not hold the MPs' attention.
Finally, Advani suggested the constitution of a five-member committee, headed by parliamentary party spokesman V K Malhotra, to hold discussions with the finance minister and devise a method to make VAT more acceptable.
Immediately after the parliamentary party meeting, Malhotra, along with other members of the panel-- Keshubhai Patel, M L Khurana and S S Ahluwalia --met Singh and apprised him of the concerns raised by BJP MPs.
Shyam Bihari Mishra, another member of the panel, who emerged as most vocal critic of VAT, met Singh separately along with traders' representatives and expressed dissatisfaction over the minister's response. "We do not want VAT," he said.
Singh made yet another attempt to clarify his position by saying the Centre had nothing to do with VAT.
"I am not in a position to impose this decision on the states," he said. VAT had come into existence because of a unanimous decision taken by chief ministers, he added.
Some MPs raised objections to the provisions that allowed traders to be punished for not complying with VAT.
They demanded that the Asim Dasgupta-headed empowered panel should be scrapped. Singh turned down the demand, saying he was not authorised to either scrap or create a panel.
Responding to demands that a new empowered panel should be constituted to look into the matter, he said it was not possible for the Centre to do that.
Singh seemed to be irked by the manner in which BJP MPs have been trying to stall VAT, in total disregard of the political consensus that emerged at the chief ministers' meeting.
Malhotra, however, said Singh gave a patient hearing to the concerns raised by MPs and said any changes in VAT could be only be made at the state level, the Centre having little influence over it.
"The issue could be resolved between state governments and traders," the BJP spokesman said.
Malhorta said during his meeting with Singh, he also informed him of apprehensions expressed by MPs on the withdrawal of exemptions from readymade garments and powerlooms, which, they feared, would adversely affect small-scale units and the employment scenario.
The finance minister promised to look into these issues and put in place a mechanism to ensure that the small-scale sector and the employment scenario remain unaffected, he added.
