Senior Congress leader P Chidambaram on Thursday welcomed the rationalization and reduction in the rates of the goods and services tax (GST) after eight years saying it is too late as the middle and poorer sections of the people have pointed out that the initial rates were wrong and added that the government has realised that the path on which they had walked for eight years was wrong, and “done a U-turn”.
In a statement, the senior Congresd leader said: “GST rationalisation and reduction of the rates are welcome, but one is left with the thought that these steps are eight years too late.”
Chidambaram highlighted that Congress, many economists and the middle and poorer sections of the people have, for years, “pointed out that the design of the GST and the initial rates were wrong, but the government turned a deaf ear”.
“I am happy that the government has realised that the path on which they had walked for eight years was wrong, and done a U-turn,” he said.
Chidambaram stated that it should have always been a “Good and Simple Tax”.
“The middle and poor classes will heave a sigh of relief,” he said.
Taking a swipe at the government, Chodambaram said, “The government and, in particular, the Finance Minister (Nirmala Sitharaman) had defended the flawed design and the complicated multiple rates so far. It is heartening to see the Finance Minister and other government leaders applauding the changes made yesterday.”
The remarks from the senior Congress leader came after Sitharaman on Wednesday announced GST rate cuts, saying that with the two-tier tax rate system approved, the common man will benefit greatly.
The GST Council approved the two-tier rate structure of five per cent and 18 per cent from the existing four-tier GST framework — 5, 12, 18 and 28 per cent.
The GST rate rationalisation will be implemented from September 22.
“For common man and middle class items, there is a complete reduction from 18 per cent and 12 to 5 per cent. Items such as hair oil, toilet, soap bars, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware and other household articles are now at 5%,” Sitharaman said.
“UHT milk, paneer, all the Indian breads will see nil rate,” she added.
The 56th Goods and Services Tax (GST) Council meeting commenced on Wednesday to review potential rate reductions and category adjustments for numerous items under the indirect taxation system. The marathon meeting lasted for over 10.5 hours.
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Sofia Babu Chacko is a journalist with over five years of experience covering Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes that every voice matters, and journalism has a vital role to play in amplifying those voices. Sofia is committed to creating impact and shedding light on stories that truly matter. Beyond her work in the newsroom, she is also a music enthusiast who enjoys singing.
