Chidambaram Lauds GST Rate Reduction After Eight-Year Oversight
Former Finance Minister P Chidambaram commends the government's decision to streamline GST rates from multiple slabs to two, a move he describes as 'eight years too late.' The adjustments align the tax structure with recommendations made by Congress and economists upon its 2017 introduction.
- Country:
- India
In a significant policy shift, former Union Finance Minister P Chidambaram praised the government for its recent decision to simplify the Goods and Services Tax (GST) system by reducing the number of tax slabs to two. Chidambaram, a senior Congress leader, highlighted the government's shift in stance as a realization of past mistakes, acknowledging the concerns previously raised by Congress and economists when GST was launched in 2017.
Addressing reporters in Madurai, Chidambaram emphasized the initial flaws of the GST system, stating, "Eight years ago, when this law was implemented, it was wrong." He criticized Prime Minister Narendra Modi and his administration for ignoring earlier warnings from Congress, including advice from former Chief Economic Advisor Arvind Subramanian about the tax's shortcomings.
The restructured GST now features two main rates—5% for essential goods and services and 18% for standard items. A separate 40% rate applies to luxury goods. The Congress leader noted these changes would alleviate the financial strain on the middle and poorer classes, previously burdened by higher rates.
(With inputs from agencies.)
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