'Petrol, Diesel In GST? Not In Immediate Future'

'Tax cannot be emotional.'

Days after the big-bang goods and services tax reform announcement, Union Finance Minister Nirmala Sitharaman, at her North Block office, spoke at length on a range of issues in an hour-long interaction with Business Standard's Asit Ranjan Mishra, Vikas Dhoot, Nivedita Mookerji and A K Bhattacharya.

Concluding segment of a multi-part interview:

• Part 1 of the Interview: 'I Won't Wait For Decades To Get Reform Done'
• Part 2 of the Interview: 'I Can't Say On September 22, I Will Be With A Stick'
• Part 3 of the Interview: 'My God, The Number Of Meetings We Had On GST!'

We have started re-engaging with China. Are we looking to ease investment flows from there?

India has to have trade and investment relationship with as many countries. You are a growing economy, your need for investment is phenomenal.

Any amount of investment coming in today, India can absorb it, and give good returns.

So with our economy being like a sponge, which can take so much and more, we want investment from every part of the world, sovereign funds from every part of the world, because we can assure them of good returns.

You have talked about Press Note (PN) 3, and said it is possible that some things could change...

We've already sort of tried tweaking and flexing the PN 3 with regards to specialists who have to come for projects which are already on the ground but are not getting completed because they want the domain experts to come and do something.

And if they have to come from China to that extent, some things have already been done.

Is the large trade deficit with China still a concern?

Trade deficit with anybody... if it is so huge, I will want to change.

The labour codes are there, but they are not being enforced. You cannot get into land acquisition because it is not part of the Union government's domain.
So within your territory, is there anything more that needs to be done? When will we see the next round of GST reforms -- for example, inclusion of petrol and diesel?

Not in the immediate future.

Any other reform that you have in mind?

Within the finance ministry, the things which are standing out, and I need to push my efforts or press the pedal on, include disinvestment. And I will be working on it.

There is no new agenda, but the existing agenda which sort of went in a slow motion because of many reasons... I'll have to see which is the best way to revive and bring them on track.

That is one thing which I have to do. I will also have to look at the central public sector enterprises: Their efficiency levels, their growth because the DPE (Department of Public Enterprises) is with me.

They'll have to look at the ways in which the ranking of all the ratnas happen -- maharatna, miniratna and all that.

So I want to get efficiency coming into the public sector enterprises. That's a second one.

One big thing which I'm already fully on is asset monetisation. It is another area in which I've spent a lot of time now to make sure that at least public sector undertakings which are sitting over huge assets do well.

No doubt, we will have to professionalise them. They will have to run to bring in optimum utilisation of all the capacities, but asset monetisation is probably put by the side in the process of professionalising them.

I want that to be bigger. Otherwise, it makes no sense for huge assets sitting which are just remaining to be unlocked. So I'll be paying a lot of attention there.

That is a heavy agenda. Anything on the next-gen reforms for which the task force was set up?

Two ministers are heading the GoMs (Groups of Ministers) and two task forces are being led by officials, one the current Cabinet secretary and another by the former Cabinet secretary.

All of them are looking at reforms. So we will be waiting for them to give their report.

Any timeline on that?

It is clearly something which has to be done at the earliest... .

The 8th Pay Commission, to be implemented from April 2026, hasn't been constituted yet. Are you confident of implementing it from that date?

See, whether you want it or not, it has to be implemented from April 1. And I am not saying it is going to happen like this, but even if it is delayed, but happens a bit late, I will still have to honour it from April 1, 2026.

Let us say, if it comes in May, I can't say I will do only from May or only from June. It has to be done from April 1.

I will have to implement it.

While all the attention has been on the GST rate changes, you have also significantly rationalised compliance norms and eased registrations so that they can be granted in three days.
While the feedback from MSMEs is very positive on this, there is concern on the GST levy for job works done by MSMEs for the apparel sector rising to 18 per cent from 12 per cent...

There is no longer a 12 per cent. How will I take it anywhere else but 18 per cent? Services are all almost in 18 per cent. So as a service, it will go to 18.

See ultimately, we may have an emotional attachment to a sector. We may have an emotional attachment to my constituency where there is a particular industry.

I may see a sympathetic, humanitarian approach on one particular sector. I may see a job potential in a third.

I cannot have GST satisfy me on this or that. Tax goes on a principle.

I tax the value added in a particular process of manufacturing, or I tax a particular value addition because of the service component which comes in, and therefore, the tax moves accordingly... I have a great sympathy for job works because I also know in Tirupur, they depend on it.

I cannot tweak it for that purpose. It falls under the category of service, you pay that much.

It is for the manufacturer to reform his business formula accordingly. Tax cannot be emotional.

Do you think that, maybe in the future, the Council could still look at specific items' rates?

I won't speculate.

Lastly, do you expect your post-Budget interviews to happen from this building or in a new building?

I think it is going to be the new building. I would think even pre-Budget interactions will be in the new building.

Isn't there an expectation that you will not leave this building soon? Is there a printing press there?

On the contrary, the expectation is that we clear it up sooner. We will be going lock, stock and barrel.

Feature Presentation: Aslam Hunani/Rediff