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New Delhi: Congress President Mallikarjun Kharge addresses a press conference in New Delhi (Photo: PTI)
Congress President Mallikarjun Kharge on Friday sharply criticised the central government’s Goods and Services Tax (GST) policies, accusing it of engaging in “tax terrorism” and called for immediate reforms.
In a post on X (formerly Twitter), Kharge referred to an incident involving a small business owner from Coimbatore. The owner of Sree Annapoorna restaurant reportedly had to face humiliation for questioning the government’s GST policies.
According to Kharge, Finance Minister Nirmala Sitharaman responded with a dismissive laugh and later pressured the owner into a public apology. Kharge criticised this behaviour as indicative of the government’s arrogance and said it reflects a broader disregard for small business owners who are struggling under the current GST and demonetisation measures.
“The owner asked a genuine question about Modi govt’s flawed GST and was first met with a condescending laugh by the FM and later forced to apologise to her on camera,” Kharge said. He said, “From Day 1, the Congress party is saying that we need a Simple, Uniform, Moderate and Rational GST on essential items.”
Quoting the Congress party manifesto, Kharge further wrote, “Congress will replace the GST laws enacted by the BJP/NDA government with GST 2.0. The new GST regime will be based on the universally accepted principle that GST shall be a single, moderate rate (with a few exceptions) that will not burden the poor.’
“BJP’s ‘Loot Small Owners & Shoot the Messenger’ policy spells a disaster for the Nation’s economy!” the Congress leader said.
‘Tax Terror’ for Poor & Middle Class, while ‘Tax Cuts’ for Modi ji’s Crony Friends!The disgraceful humiliation of a small businessman, the owner of Sree Annapoorna restaurant in Coimbatore by the Finance Minister and the BJP, smacks of arrogance of power. She has been a…
— Mallikarjun Kharge (@kharge) September 13, 2024
Tax terrorism burdening middle class: Rahul Gandhi
The criticism also extends to the broader tax policies of the Modi government. Rahul Gandhi, the Leader of the Opposition in the Lok Sabha, has previously accused the government of engaging in “tax terrorism” and exacerbating the financial burden on the middle class. Gandhi highlighted a disparity between personal income tax and corporate tax collections, suggesting that the middle class is unfairly targeted while large corporations benefit.
“In this period of terrible inflation, the middle class, which survives by paying heavy GST on everything, should think – is your income more than that of big corporates or businessmen? Are you getting any special benefit of government facilities? No, right! Then why is this indiscriminate tax being collected from you?” Gandhi asked on his WhatsApp channel.
He labelled this situation as a ‘Chakravyuh’ of tax exploitation and warned that it is detrimental to economic fairness.
R&D grants exempt from GST
Earlier this week, the GST Council decided to exempt research and development (R&D) grants from tax, in a big relief to higher education and research institutes. The decision came days after uproar after the Directorate General of GST Intelligence (DGGI) issued show-cause notices to seven prominent institutions, including IIT Delhi and Anna University, demanding GST payments amounting to approximately Rs 220 crore for research grants received since 2017, according to a report by The Times of India.
Aam Aadmi Party (AAP) General Secretary Sandeep Pathak condemned the imposition of the Goods and Services Tax (GST) on research grants, labeling it as ‘tax terrorism’. This newly introduced tax, which for the first time targets grants awarded to research institutions, has drawn widespread criticism. Pathak emphasised that no other developed or developing country imposes such a tax, warning that it could severely hinder innovation by cutting essential funding for critical research efforts.
First Published: Sep 13 2024 | 4:12 PM IST
