The opposition is constantly trying to corner the BJP over the GST reform. Today, many big Congress leaders and TMC MP Mahua Moitra put forth their views on this issue. Some called this decision a U-turn, while some took a jibe at it as 'One Nation, Nine Taxes'. Let us tell you, according to the new decision of the government, now the tax slab has been limited to only 5% and 18%.
The new rates will come into effect from September 22. This will make common consumer goods like roti-paratha to oil, ice cream, and TV cheaper. At the same time, tax on health and life insurance has been completely abolished. This decision will provide direct relief to the middle class and the poor. Let us know what which opposition leader said on the change in tax rates?
Chidambaram said the government took a U-turn
Senior Congress leader and former Finance Minister P. Chidambaram fiercely attacked the central government on the GST reform. He said that the government adopted the wrong path for eight years and now has taken a U-turn out of compulsion. Chidambaram said that the Congress and many economists had warned the government from the very beginning that the structure and rates of GST are wrong, but the government ignored it. He taunted that this tax should have been a good and simple tax from the very beginning. He called it a late step and said that now the government has realized its mistake.
Jairam Ramesh's questions
Congress MP Jairam Ramesh has cornered the Modi government on GST reforms. He said that Prime Minister Narendra Modi had announced a reduction in rates in his speech on August 15, while this decision should have been taken after the meeting of the constitutional body GST Council. Ramesh asked whether the council has now become a mere formality. The Congress leader said that his party has been demanding GST 2.0 for a long time, in which the rates are low, the burden on MSMEs is reduced, and the problem of tax evasion and misclassification is eliminated.
He said that since 2017, Congress had pointed out the flaws of GST, but the government had ignored it. Ramesh said that the current reforms will provide relief to consumers, but the real GST 2.0 is still awaited. He also described the demand to extend compensation for states for five more years as important. At the same time, the GST Council has fixed two rates of 5% and 18% by combining the 12% and 18% slabs.
Priyank Kharge said - One Nation, Nine Taxes
Congress leader Priyank Kharge has targeted the Modi government over the recent GST reforms of the Center. He said that for years the Congress had demanded to reduce tax rates and simplify the structure, but the government did not pay attention. Kharge wrote that 'One Nation, Nine Taxes' was implemented in place of 'One Nation, One Tax'.
Kharge said that the Congress had promised GST 2.0 in the 2019 and 2024 manifestos, so that farmers, small businessmen, and the middle class get relief. He claimed that two-thirds of the total GST collection burden falls on the poor and the middle class, while only 3% GST comes from billionaires. He questioned that now that the government has reduced the rates, how will the states be compensated for the loss.
Tax on insurance removed due to Mamata Banerjee's initiative - Mahua Moitra
Trinamool Congress MP Mahua Moitra has credited Chief Minister Mamata Banerjee for the decision to remove GST on health and life insurance. He said that Mamata Banerjee had written a letter to Finance Minister Nirmala Sitharaman on August 2, 2024, demanding the removal of 18% GST on insurance. Moitra wrote that the Center has finally taken this decision, due to which insurance has now come under the zero tax category. He taunted that this step has been taken in view of the pressure of the tariff hike from US President Trump.
Let us tell you, in the GST Council meeting, it was also decided that GST on many essential health equipment like thermometers, oxygen, diagnostic kits, and glasses has been reduced to 5%. At the same time, everyday items like oil, shampoo, paste, and soap have also now come down from 18% to 5% tax category.
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