Tamil Nadu’s political landscape witnessed a sharp exchange after Finance Minister Thangam Thennarasu criticised AIADMK general secretary Edappadi K Palaniswami (EPS) for praising the Centre’s newly announced GST reforms. Thennarasu accused EPS of echoing the BJP’s narrative while neglecting the financial autonomy and fiscal rights of Tamil Nadu.
In a post on X, Thennarasu said Palaniswami’s remarks showed he had become the “voice of the BJP” instead of standing up for Tamil Nadu’s interests. He argued that progressive states like Tamil Nadu required stronger revenue support and financial devolution to sustain their contributions to the national economy. According to him, EPS had failed to demand these protections, choosing instead to shower praise on the Centre.
EPS, however, hailed the GST 2.0 reforms as “historic decisions,” thanking Prime Minister Narendra Modi for his “visionary leadership” and Finance Minister Nirmala Sitharaman for their role in achieving consensus. He described the two-slab structure of 5 per cent and 18 per cent as a “growth-oriented reform” that would simplify compliance, provide relief on essentials, healthcare, agriculture inputs, and insurance, and boost consumer confidence.
The reforms have been described by Sitharaman as the most significant revamp since GST’s launch in 2017. They include rationalised tax rates on medicines, consumer goods, and automobiles, along with a higher slab for luxury and sin goods. The finance minister highlighted that these changes were made unanimously by the GST Council.
Thennarasu, however, maintained that EPS’s enthusiasm for the reforms reflected his alignment with the BJP rather than concern for Tamil Nadu’s fiscal stability. He accused him of ignoring the state’s financial welfare for political convenience, framing the issue as one of federal justice versus partisan loyalty.
