Chidambaram Welcomes Overdue GST Reforms, Critiques Eight-Year Delay

Former Union Finance Minister P Chidambaram has lauded the government's decision to slash GST slabs of 12% and 28%, yet criticized the eight-year delay in implementing such reforms. Chidambaram emphasized the Congress party's consistent advocacy for a streamlined tax rate, noting the step as major progress towards simplification.

In an earlier address in Madurai, Chidambaram voiced that many, including former Chief Economic Advisor Arvind Subramanian, warned against the complexities of the existing GST framework since its inception. He remarked that the government has now acknowledged these flaws, aligning with previous warnings by economists and party leaders.

While expressing gratitude for the reforms, Chidambaram took a hard stance against Prime Minister Modi and his administration for disregarding initial criticisms. The GST, introduced in 2017, was initially set with multiple rates leading to significant economic burdens on middle and lower-income groups. Chidambaram acknowledged that the recent tax cuts would bring much-needed relief to these communities.

(With inputs from agencies.)