GST is of the rich, by the rich and for the rich: TS Singhdeo
India's GST (Goods and Services Tax), system is disproportionately benefiting the wealthy while burdening the middle and lower-income groups, says TS Singhdeo, former Deputy Chief Minister of Chhattisgarh
Bhopal: India's GST (Goods and Services Tax), system is disproportionately benefiting the wealthy while burdening the middle and lower-income groups, TS Singhdeo, former Deputy Chief Minister of Chhattisgarh, said.
Addressing a press conference at the Madhya Pradesh Congress Committee office Headquarters in Bhopal, Singhdeo said the current GST which has been implemented in the name of one nation one tax in the country is of the selected rich, by the rich and for the rich.
"It is affecting the pockets of the common people and making the rich people richer", he said.
"GST needs to be revised"
Singhdeo demanded the current GST system should be revised to relieve financial strain on common citizens and increase revenue by reducing tax evasion.
He argued that the country's 10% rich are paying 3 per cent to 4 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 money they can spend for their home and family is being taken away by the govt in the form of GST", he said.
“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 exemption was given in corporate tax. ", he added.
"Abolish GST on food items"
Singhdeo also demanded that GST on food items should be abolished.
"While imposing GST on items like pencils is unjustified and citizens who take insurance for health security are paying 18 per cent GST,” Singhdeo said.
He, however, claimed that businessmen and traders are facing lot of difficulties in paying taxes and the prevailing GST is 9 per cent.
"Simplification is essential, and there should be a maximum of 2 or 3 per cent 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 at 5 per cent, 12 per cent and 18 per cent", he said.
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.
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