The Manipur Pradesh Congress Committee (MPCC) has raised objections to the recently passed amendment to the State Goods and Services Tax (GST) in Parliament, warning that it could spell grave difficulties for Manipur’s economy and governance.
In a statement issued on Friday, MPCC president K. Meghachandra said that while the introduction of GST in 2017 aimed to unify India’s tax structure, its “one-nation” framework has failed to address the economic realities of small, landlocked, and socio-economically fragile states like Manipur.
The MPCC listed several areas of concern, starting with the loss of state autonomy, noting that GST had stripped Manipur of the power to levy independent taxes such as VAT and entry tax, thereby limiting its financial flexibility.
The party also argued that the uniform tax slabs have hurt local industries, artisans, and farmers, pushing up prices of handloom, bamboo crafts, and small-scale goods, and making them less competitive.
Pointing to the state’s digital divide, Meghachandra said that GST’s online-based compliance system is ill-suited for areas with poor internet connectivity and low digital literacy, leaving many small traders and rural entrepreneurs unable to meet requirements.
The statement also criticised the delay in GST compensation payments from the Centre, stressing that the resulting revenue gap has damaged Manipur’s already fragile fiscal health.
Uniform tax rates across metros and remote hill districts, the MPCC said, fail to account for higher transportation costs and logistical hurdles in the state.
The party further alleged that GST ignores the special category needs of the Northeast, overlooking Manipur’s unique socio-political and geographical challenges.
Calling for urgent reforms, the MPCC urged the Central Government and GST Council to review the tax system with a region-sensitive lens, restore fiscal space for smaller states, ensure timely compensation, simplify compliance for small traders, and introduce differential tax slabs for economically backward and geographically isolated regions.
“The voice of Manipur must be heard in the GST debate,” Meghachandra asserted.
