GST Rate Cut Controversy: A Fleecing Festival for Common People?
The Congress alleged that GST rate cuts did not benefit consumers as companies increased product prices pre-emptively. Leaders criticized the government's approach, calling it a 'fleecing festival'. Despite promises of relief, the promised economic boost seems undermined by price hikes by major firms.
- Country:
- India
In response to allegations of a GST rate cut, Congress on Sunday accused big firms of hiking product prices prematurely, thereby negating the intended benefits for consumers. Citing a media report, Congress expressed concerns that the economic relief expected from such tax reductions is not reaching the people who need it most.
Jairam Ramesh, Congress' general secretary for communications, shared his disapproval on social media. His signature post on X criticized the perceived economic relief as a 'fleecing festival' rather than a savings initiative. This stance comes as the Centre's GST reductions from 12% to 5% remain under scrutiny.
Despite Prime Minister Narendra Modi asserting that GST reforms would bolster India's growth, providing significant steps for Aatmanirbhar Bharat, widespread pricing increases suggest otherwise. Companies' decisions to pre-emptively raise prices have overshadowed a move initially intended to boost consumption and support the economy.
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- GST
- rate cut
- Congress
- price hike
- consumers
- Prime Minister
- India
- growth
- companies
- products
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