Pervez Bari | Clarion India
BHOPAL – The GST (Goods and Services Tax) system disproportionately benefits the wealthy and burdens the middle and lower-income groups. The current system, implemented in the name of one-nation-one-tax in the country is of the selected rich, by the rich and for the rich, senior Congress leader and former deputy chief minister of Chhattisgarh, TS Singhdeo, has said.
He said the GST was affecting the pockets of the common people and making the rich richer.
Addressing a press conference here in the Madhya Pradesh Congress Committee office headquarters on Saturday, Singhdeo demanded a revision of the current GST system to relieve the financial strain on common citizens and increase revenue by reducing tax evasion. He argued that the country’s 10% rich are paying three to four per cent GST, while the lower 50 per cent income group population is bearing the burden of 64 per cent GST. Due to this, the government takes the money they should be spending on their home and family.
“More GST is being taken from the middle and lower income groups while corporate houses of the country are being given an annual exemption in corporate tax. It is completely impractical to take GST from the lower-income group. One can understand why the exemption was given in corporate tax,” he said.
The Congress leader also said GST on food items should be abolished and criticised the imposition of GST on items like pencils and other stationery items.
Singhdeo, however, claimed that businessmen and traders face many difficulties in paying taxes. “Simplification is essential, and there should be a maximum of 2 or 3 percent GST slab rates,” he said.
Singhdeo said that the government is increasing GST on commodities to create sources of income. Giving the example of popcorn, he said that there are three impractical rates of GST levied on popcorn: 5 per cent, 12 per cent, and 18 per cent. He also alleged that while the middle and lower-income groups are paying more GST, the corporate houses are being given an annual exemption of Rs 2 lakh crore in corporate tax.
