Daijiworld Media Network - New Delhi
New Delhi, Sept 4: Congress president Mallikarjun Kharge launched a sharp critique against the Modi-led central government on Thursday, accusing it of waking up “eight years too late” to the need for Goods and Services Tax (GST) reforms. He asserted that the opposition had long championed tax simplification and fairness, especially to support small businesses and the common man.
The recent overhaul by the GST Council—which includes merging several tax slabs and reducing rates on a range of essential goods and services—was welcomed by Kharge, albeit with pointed criticism. Under the new system, two principal slabs of 5% and 18% will remain, alongside a 40% rate for sin goods. Items previously taxed at 12% and 28% will now mostly fall within the two core slabs, a move the government claims will provide relief to consumers.
Reacting on social media platform X, Kharge wrote, “For nearly a decade, the Indian National Congress has demanded a simplified GST structure. But the Modi government turned the slogan of 'One Nation, One Tax' into a reality of 'One Nation, Nine Taxes’—with rates like 0%, 5%, 12%, 18%, 28%, and special slabs of 0.25%, 1.5%, 3%, and 6%.”
He emphasized that the Congress had already proposed a revamped GST system—dubbed GST 2.0—as early as 2019, and again in its 2024 manifesto. Their proposal included simplified compliance mechanisms and a rationalized structure to help MSMEs, which, he said, have been badly hit by the current complex system.
Recalling the origin of the tax, Kharge noted that GST was originally conceived under the Congress-led UPA government in 2005. When the bill was tabled in Parliament in 2011 by then Finance Minister Pranab Mukherjee, it faced stiff opposition from the BJP. “Ironically, Modi Ji, when he was Gujarat’s Chief Minister, was one of its most vocal critics,” he said.
Kharge didn’t hold back in his criticism of the BJP's approach to GST collections. “Now, the same BJP boasts about record GST collections as though taxing common citizens is some badge of honour,” he stated.
He further accused the government of imposing regressive taxes, claiming that, “for the first time in India's history, taxes were levied on farmers.” Citing examples, he said items like milk, curd, grains, flour, books, children's stationery, and even hospital and insurance services were brought under GST. “That’s why we call it the 'Gabbar Singh Tax’—it loots from the people.”
Highlighting the disproportionate impact of GST, Kharge pointed out that 64% of GST revenue comes from poor and middle-income citizens, whereas billionaires contribute only 3%. Meanwhile, corporate tax rates have been slashed from 30% to 22%.
He also referenced government data to show the growing tax burden on citizens. “Over the last five years, Income Tax collection has surged by 240%, and GST revenue by 177%.”
Kharge concluded by demanding full compensation for states, using 2024–25 as the base year, to offset potential revenue losses due to rate cuts. He also stressed the need to eliminate complex GST compliance requirements.
“It’s good that the government has finally woken up from its Kumbhakarniya sleep on GST reform. But real benefit will only come when compliance is simplified and states are supported adequately,” he said.