‘Casinos over frequent individuals’: Congress slams authorities on GST adjustments

By PTI

NEW DELHI: The Congress on Tuesday attacked the federal government for its resolution to withdraw GST exemptions on objects resembling pre-packed wheat flour, curd and buttermilk, and requested why additional deliberations have been ordered for deciding the tax price for casinos however not for issues consumed by decrease and center earnings teams.

Party chief Rahul Gandhi hit out on the authorities over GST charges, and mentioned a single, low tax price would assist cut back the burden on the poor and the center class.

Highlighting that the GST price on diamonds is at 1.5 per cent, whereas that on medical insurance was 18 per cent and hospital rooms was 5 per cent, he once more dubbed the GST as “Gabbar Singh Tax” and mentioned it reveals who the prime minister cares for.

At a press convention on the AICC headquarters right here, Congress spokesperson Gourav Vallabh mentioned the Narendra Modi authorities’s choices during the last eight years show how a regime’s “cluelessness and incapability” can single-handedly destroy a nation’s financial potential.

“The GST, which was planned as a progressive tax structure, has been so badly mishandled that rationalising it will be a long and painful process,” he mentioned.

Several enhancements are wanted within the present GST construction however as a substitute of specializing in fixing that, the BJP-led authorities appears hell-bent on making the lives of the frequent individual “miserable”, he alleged.

“Finance Minister Nirmala Sitharaman has cruelly deserted low-and- middle-income teams within the identify of tax rationalisation.

In the forty seventh GST Council assembly final week, a sequence of price revisions was introduced, most of which is able to adversely have an effect on low-and-middle-income teams,” Vallabh mentioned.

He mentioned exemptions have been withdrawn for pre-packed and pre-labelled meals grains, fish, paneer, lassi, honey, jaggery, wheat flour, buttermilk, unfrozen meat/fish (not frozen), and puffed rice (muri).

These will now be taxed at 5 per cent, at par with branded objects, he famous. Exemptions have additionally been withdrawn for resort lodging as much as Rs 1,000 per day and these will now be taxed at 12 per cent, Vallabh mentioned.

Tax charges have been elevated from 12 per cent to 18 per cent on merchandise resembling printing, writing or drawing ink, knives with slicing blades, spoons, forks, paper knives, pencil sharpeners, and LED lamps, he mentioned.

Vallabh identified that the Group of Ministers had finalised a uniform tax 28 per cent GST on casinos, horse racing, and lottery however this resolution was requested to be reviewed, and the GoM has been given a 15-day interval to evaluation its resolution.

The GST Council final Wednesday deferred its resolution on levying a 28 per cent tax on casinos, on-line gaming, horse racing and lottery pending extra consultations with stakeholders, Union Finance Minister Nirmala Sitharaman had mentioned.

A gaggle of ministers headed by Meghalaya Chief Minister Conrad Sangma has been requested to contemplate submissions of stakeholders once more on the valuation mechanism and submit its report by July 15, she had informed reporters right here.

Attacking the federal government, Vallabh mentioned these price revisions are unwelcome at a time when inflation is placing strain on the pockets of the frequent individual.

“The CPI inflation in May 2022 stood at 7.04 per cent, and was as high as 7.79 per cent in April 2022. These are way higher than the maximum limit of 6 per cent set by the RBI. All the products for which GST rates have been revised upwards are items that are consumed daily by the lower and middle classes,” he mentioned.

Posing questions for the BJP-led authorities, Vallabh requested is the federal government keen to jeopardise the residing requirements of the low-and-middle-income group at a time of excessive inflation simply to extend its revenues.

“What is the government hiding from the nation concerning the economic situation that it is so desperate to raise revenues at the expense of people’s welfare,” he requested.

“What is more important for the government — casinos or the common person? Why were taxes raised across the board with no review of the decision to remove tax exemptions?” Vallabh mentioned.

Pre-packed and labelled wheat flour, papad, paneer, curd and buttermilk might be taxed at 5 per cent after the GST Council determined to cease permitting exemptions on such objects whereas elevating charges on a bunch of others.

The GST Council, at a two-day assembly right here, accepted suggestions for price rationalisation made by totally different teams appointed by it, leading to tax adjustments, Sitharaman had mentioned. The tax price adjustments will come into impact from July 18.