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Congress leader Priyank Kharge on Thursday slammed the Centre's recent GST reforms, saying the concept of “One Nation, One Tax” has effectively become “One Nation, 9 Taxes.”
He also asserted that the Congress party has consistently advocated for a more streamlined GST structure with lower rates to reduce the financial strain on farmers, small businesses, and the middle class. In a post on X, Priyank Kharge wrote, “A bit of common sense seems to have dawned upon the Modi Sarkar on the Gabbar Singh Tax. For almost a decade, the Indian National Congress has been demanding simplification of GST. “One Nation, One Tax” had become “One Nation, 9 Taxes” -- 0%, 5%, 12%, 18%, 28%, and special rates of 0.25%, 1.5%, 3% and 6%.”
“LoP RahulGandhi and Mallikarjun Kharge had been consistently batting for 18% cap or lower on GST Rates. @INCIndiain its 2019 and 2024 Manifestos had demanded a GST 2.0 with a simplified and rational tax regime. We had also demanded to simplify the complicated compliances, which had severely hit the MSMEs and small businesses. For the first time, Farmers were taxed under the BJP, with GST rates on at least 36 goods/items in the farm sector ranging from 12% to 28%. Essential commodities like packaged milk, wheat flour, curd, books, stationery, etc were brought in under the GST,” the post reads.
Here's what Kharge alleges
Kharge said most of the GST burden falls on the poor and middle class, while billionaires contribute very little. He also questioned how the Centre plans to compensate states like Karnataka after finally simplifying the tax system.
“2/3rd of the total GST, i.e. 64% comes from the pockets of the poor and the middle class, but only 3% GST is collected from billionaires, while the rate of Corporate Tax has been reduced from 30% to 22%. Now that the Govt has finally adhered to our demands of RATIONALISING & SIMPLIFYING the GST, they are yet to figure out how they will compensate the losses to states like Karnataka,” the post further reads.
New GST reforms
A day earlier, Finance Minister Nirmala Sitharaman announced major cuts in GST rates across a broad spectrum of goods, including essential items, automobiles, agricultural inputs, and electronic appliances.
In a key decision at the 56th GST Council meeting, the government moved to simplify the tax structure by merging the 12% and 28% slabs, resulting in a streamlined two-rate system of 5% and 18%.
For essential household goods, prices are set to drop significantly. Items like hair oil, shampoo, toothpaste, soap bars, toothbrushes, and shaving cream—previously taxed at 18%- will now fall under the 5% GST bracket.
2/3rd of the total GST comes from the pockets of the poor and the middle class.
Sitharaman also announced the complete removal of GST on individual health and life insurance policies.
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