Congress Slams GST Reforms as Election Tactic

In a sharp critique of the central government's recent tax reforms, Congress leader Harish Rawat suggested that Prime Minister Narendra Modi's decision to reconsider the Goods and Services Tax (GST) slabs is rooted in electoral concerns. Rawat posited that the move was spurred by a 'fear of defeat' in the upcoming Bihar elections. The Congress leader, speaking to ANI, welcomed the proposed changes but emphasized that the party had been consistent in voicing its dissatisfaction with the 'unjust' GST slabs from the outset.

Rawat highlighted past criticisms from Congress, pointing out that Rahul Gandhi had previously dubbed the GST as the 'Gabbar Singh Tax'. He stressed the need for just two tax slabs at 5% and 12%. Following the Prime Minister's announcements, Congress has called for an official discussion paper to facilitate a broader debate on what they label as GST 2.0. Congress General Secretary Jairam Ramesh underscored the necessity for the revised GST to embody its original promise of being a 'Good and Simple Tax', rather than a 'Growth Suppressing Tax'.

Prime Minister Modi had earlier declared significant GST reforms during his Independence Day address, promising it as a 'double Diwali gift'. Acknowledging the achievements of the past eight years in tax reduction, he announced the formation of a high-powered committee to oversee the re-evaluation. The revisions aim to ease tax burdens on essential goods and support for MSMEs and small businesses, ushering in what the government terms as next-generation GST reforms.

(With inputs from agencies.)