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For this matter, Modi came up with a plan to eliminate regional parties. Accordingly the GST bill is brought, Goods and Services Tax (GST) will abolish all the the existing taxes and will bring in a common tax structure. This tax will go to the Central government and then will be divulged to the states according to the recommendations of the Finance Commission.
With GST, State governments will be losing lot of revenue and they have to be dependent on Center to start any new welfare scheme. As of now, regional party leaders can increase tax and create new revenues which will help fund new welfare programs. But now the channel is closed and so the popularity of the regional parties will be cut down. National parties at the center will only help their states with good funds and can show empty hand to other party state government. Regional parties will be in fix as they rarely have a chance to form the government at the center.
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