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'One Nation Nine Taxes': Opposition On Delayed GST Reforms, Middle-Class Pain
'One Nation, One Tax' Turned Into 'One Nation Nine Taxes': On GST Reforms, Opposition Says 'Middle Class' Suffered For Eight Years
Former Finance Minister P Chidambaram said that the GST implementation eight years ago was faulty. Congress president Mallikarjun Kharge said that the government has awakened from 'Kumbhakaranian' sleep.
GST Reforms: While India Inc has hailed the Goods and Services Tax reforms, the opposition is still not happy. While the general public is cheering the rate cut on a number of products, Congress rued a delay in the reforms. Slamming the Centre over Goods and Services Tax, Congress president Mallikarjun Kharge on Thursday said that government changed the "One Nation, One Tax" into "One Nation, 9 Taxes."
The Congress president said that the government has awakened from 'Kumbhakaranian' sleep. "It is a good thing that, even if 8 years late, the Modi government's Kumbhakaranian sleep regarding GST has finally awakened, and they have spoken about Rate Rationalisation upon waking. All states should be given Compensation for a period of 5 years, taking 2024-25 as the base year, because a reduction in rates is certain to have an adverse impact on their revenues," said Kharge.
Also Read: GST Council Cuts Tax On Renewable Energy Equipment To 5%
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The Congress leader added, "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%, 5%, 12%, 18%, 28% and special rates of 0.25%, 1.5%, 3%, and 6%...Today, the same BJP government celebrates record GST Collections, as if collecting tax from the common people was some great achievement."
Shiv Sena (UBT) MP Priyanka Chaturvedi said that the reforms were long overdue. "Long overdue correction on GST slabs, which was being demanded, has now been done!! High time GST truly works for India and Indians."
Former Finance Minister P Chidambaram said that the GST implementation eight years ago was faulty. "Eight years ago, when this law was implemented, it was wrong. At that time, we had advised that such a tax should not be imposed. The then Chief Economic Advisor, Arvind Subramanian, also advised that it was a mistake. But at that time, neither the Prime Minister nor the ministers listened....At least now, I thank them for realising the mistake and correcting it," he said.
Chidambaram further said that middle class suffered for eight years due to the wrong policies. "For eight long years, it was the middle class and poor people who were squeezed dry. The 12% and 18% rates have now been reduced to 5%. For all these years, it was the very same people who bore the burden of paying 12% and 18%. At least now, with a change of heart and better understanding, they have reduced these tax rates, and I appreciate them for that," he said.
Also Read: ‘Extremely Progressive': What Top Business Leaders Said About GST Council's Reforms
The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates. 5% slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.
While the 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts. Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.
Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance, no GST on health and life insurance premiums and education and healthcare, like certain services related to education and healthcare are GST-exempt.
Source: ZeeNews
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