NEW DELHI: Congress on Thursday took a swipe at the Centre, accusing it of “celebrating” the Goods and Services Tax “as if collecting taxes from the common people were some great achievement.”Congress president Mallikarjun Kharge also accused the government of turning the vision of “One Nation, One Tax” into “One Nation, 9 Taxes,” with multiple slabs.He said that Congress had advocated for GST 2.0 in its 2019 and 2024 manifestos, urging simplification of the complex GST compliance system that had severely affected MSMEs and small businesses.“The Congress Party, in its 2019 and 2024 manifestos, demanded GST 2.0 with a simple and rational tax system. We also called for simplifying the complex GST compliances, which had severely impacted MSMEs and small businesses,” Kharge said.
“On 28 February 2005, the Congress-UPA government formally announced GST in the Lok Sabha. In 2011, when the then finance minister Pranab Mukherjee introduced the GST Bill, the BJP opposed it. When Modi was Chief Minister, he vehemently opposed GST. Today, the same BJP government celebrates record GST collections, as if collecting taxes from the common people is some great achievement” he added.‘They finally have to follow Rahul Gandhi’s advice’Meanwhile, Congress leader Pawan Khera claimed that the government followed Rahul Gandhi’s advice after eight years.In a social media post on X, Congress leader Pawan Khera pointed to a series of tweets by Rahul, in which he had criticised the previous tax structure by labelling it as “Gabbar Singh tax.”“When they finally have to follow Rahul Gandhi’s advice, why do they take so much time doing that?” Khera asked.The posts, dating back to 2016 and 2017, show leader of opposition in Lok Sabha urging the GST Council to cap the rate at 18% to benefit both industry and consumers, especially the poor.
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“As the GST Council begins its deliberations today I want to stress again that an 18% cap on the GST rate is in everybody’s interest,” Gandhi had tweeted in 2016.In another post, he called for a simpler GST structure. “India doesn’t need a Gabbar Singh Tax, but a simple GST,” Gandhi tweeted in 2017, stressing Congress’ long-standing demand for a single-rate GST.‘8 years too late’Former finance minister P Chidambaram also reacted to the Centre’s latest GST rate cuts, describing them as “8 years too late.” In a post on X, he said the prevailing taxes should not have been introduced in the first place.“The GST rationalisation and the reduction in rates on a range of goods and services are WELCOME but 8 years too late. The current design of GST and the rates prevailing until today ought not to have been introduced in the first place,” Chidambaram said.GST council approves major rate revamp, introduces two-tier structureThe latest GST revamp, announced after the 56th GST Council meeting, simplifies the previous four-tier tax system of 5%, 12%, 18% and 28% into a two-rate structure of 5% and 18%.Certain high-end items, including vehicles, tobacco, and cigarettes, will attract a special 40% ‘sin tax.’ Several essential goods will now face 0% or nil tax, aiming to ease the burden on common consumers.The 10.5-hour Council meeting, attended by representatives from the Centre and states, deliberated on potential rate reductions and reclassification of numerous goods and services, marking one of the most comprehensive revisions in recent years.
