New Delhi, Sep 4 (IANS) Congress National President Mallikarjun Kharge on Thursday criticised the Modi government over the delay in implementing GST reforms, saying it was a “good thing” that the Centre has finally “woken up” after eight years, even as he asserted that the Opposition had consistently demanded the simplification of indirect taxes.
The GST Council has recently cleared sweeping changes in the tax regime, reducing the number of slabs and cutting rates on a wide range of essential goods and services.
Under the revised framework, two primary slabs of 5 per cent and 18 per cent will remain, along with a higher 40 per cent rate for sin goods. Goods earlier taxed at 12 per cent and 28 per cent will largely shift into the two main slabs, with the government claiming this will ease the burden on households.
Reacting to the move, Kharge took to X and posted, “For nearly a decade, the Indian National Congress has been demanding the simplification of GST. The Modi government turned ‘One Nation, One Tax’ into ‘One Nation, 9 Taxes.’ Which included Tax Slabs of 0 per cent, 5 per cent, 12 per cent, 18 per cent, 28 per cent and special rates of 0.25 per cent, 1.5 per cent, 3 per cent, and 6 per cent.”
He said the Congress had already proposed GST 2.0 with a “simple and rational” tax system in its 2019 and 2024 manifestos and had demanded simplification of GST compliances, which, he stated, had “severely affected” MSMEs and small businesses.
Kharge recalled that the idea of GST was first introduced by the Congress-UPA government in 2005, and when the GST Bill was presented in 2011 by then Finance Minister Pranab Mukherjee, it was opposed by the BJP.
“When Modi Ji was the Chief Minister, he vehemently opposed GST,” he added.
Kharge accused the present government of hypocrisy, saying, “Today, the same BJP government celebrates record GST collections, as if collecting tax from the common people was some great achievement.”
He further claimed that “for the first time in the country’s history,” taxes were imposed on farmers.
“This Modi government had imposed GST on at least 36 items in the agricultural sector. Milk-curd, flour-grains, and even children’s pencils, books, oxygen, insurance, and hospital expenses — on everyday things like these, the Modi government has imposed GST tax. That’s why we named this BJP’s GST the ‘Gabbar Singh Tax’,” he said.
Kharge also stated that the burden of GST is disproportionately borne by ordinary citizens.
“Two-thirds of the total GST, i.e., 64 per cent, comes from the pockets of the poor and middle class, but only 3 per cent of GST is collected from billionaires, while the Corporate Tax rate has been reduced from 30 per cent to 22 per cent,” he professed.
Highlighting revenue trends, he asserted that in the last five years, there has been a 240 per cent rise in Income Tax collection and a 177 per cent increase in GST collection.
“It is a good thing that, even if 8 years late, the Modi government’s ‘Kumbhakarniya’ sleep regarding GST has finally broken, and they have spoken about Rate Rationalisation upon waking,” Kharge stated.
The Congress President also demanded that states be fully compensated for five years, taking 2024-25 as the base year, given the likelihood of reduced revenues due to lower tax rates.
“The complex Compliances of GST must also be eliminated; only then will MSMEs and small industries truly benefit,” he said.
–IANS
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