Congress Criticizes Modi Government's GST Policies as Burden on the Poor and Middle Class Ahead of Budget Discussions
5 Dariya News
11-Jan-2025
The Congress party has criticized the Modi government's Goods and Services Tax (GST), calling it a tool to "loot" the middle class and the underprivileged, as India's Union Budget 2025 draws near. This criticism coincides with growing concerns about the burden of taxes on ordinary people and economic inequality.
GST: A Tool for Exploitation?
Congress leaders, led by party president Mallikarjun Kharge, have been vocal in their criticism of the GST system. They said the government was using GST to rob people of their hard-earned money, who are already struggling financially. Kharge highlighted that only 3% of GST funds come from the richest people, while nearly 64% come from the poorest 50% of the population.
He referred to this discrepancy as "tax terrorism," and he urged the government to fix the "faulty" GST system. Another well-known Congress spokesperson, Pawan Khera, called GST the "Gabbar Sitharaman Tax," highlighting the party's perception of it as a heavy financial burden. Khera asserted that new circulars were still being issued ninety months after it was first implemented, making compliance more difficult for both consumers and small businesses. He attacked the government's tactics, arguing that it prioritised tax collection instead of helping poor residents.
Economic Impact on Middle-Class and Farmers
The Congress party's criticism goes far beyond empty words; it is genuine concern about how GST will economically impact various industries. According to reports, farmers are not excluded from the new tax system, as 36 agricultural products are now subject to GST for the first time.
Farmers' financial stability is now much more strained as a result of increased input costs. Additionally, Congress officials argue that regular taxpayers are forced to shoulder an excessive tax burden due to consumer taxes like GST, even though corporate tax rates have been reduced from 30% to 22%. Inflation and stagnant wages have reduced the purchasing power of middle-class families, making the problem even worse.
Calls for Simplification and Reform
Ahead of the next budget talks, Congress has demanded sweeping amendments to the GST framework in response to these complaints. Originally intended to broaden the tax base, leaders such as Sachin Pilot have said the GST has instead concentrated wealth among a few while failing to help middle- and low-income individuals.
The party has held news conferences in several locations to spread its message and promote greater openness in taxation policy and simpler tax systems. They argue that a more equitable tax structure would boost consumer spending and spur economic expansion in addition to reducing costs for ordinary people.
Conclusion
The Congress party's criticism of the GST has galvanized many who are dissatisfied with the country's current fiscal policies as the country grapples with economic difficulties, including slowing GDP growth and rising inflation. The government must address these issues urgently and focus on policies that prioritize justice and support for those most affected by taxes, especially as budgetary negotiations approach.
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