New Delhi: Union Finance Minister Nirmala Sitharaman hit out at the Congress party, stating that while the Congress once considered the Goods and Services Tax (GST) impossible to implement, the Modi government not only rolled it out successfully but is now advancing it with second-phase reforms to ease the burden on common people.
Speaking at a press conference on Wednesday, Sitharaman said, “Is the Congress Party demanding five per cent tax on tobacco and gutkha? Congress Party wants us to give it at 5%. Congress Party considered it impossible to implement GST during their time. We have implemented it and are also undertaking second-generation reforms under the leadership of Modi ji so that people get relief on their day-to-day items.”
Sitharaman highlighted that the ongoing GST reforms are benefiting Micro, Small, and Medium Enterprises (MSMEs) and labour-intensive industries by simplifying compliance. She urged the Congress to clarify its stance on measures that benefit the people.
“MSMEs and labour-intensive units also get relief, due to which there will be easy compliance. Congress should decide whether it wants to oppose or support issues that are in the interest of the people. People will expose you,” she added.
In a significant announcement, Finance Minister Nirmala Sitharaman revealed a sweeping reduction in GST rates on a wide range of essential items, automobiles, agricultural inputs, and electronic appliances.
The 56th GST Council meeting decided to rationalise GST rates into two slabs: 5 per cent and 18 per cent by merging the previous 12 per cent and 28 per cent rates.
On the essential items front, products of daily household use will now cost less. Items such as hair oil, shampoo, toothpaste, toilet soap bars, toothbrushes, and shaving cream, which previously attracted an 18 per cent GST, will now fall under the 5 per cent bracket.
Furthermore, Sitharaman announced a complete removal of GST on individual health and life insurance.
The reforms also bring significant benefits to farmers and the agricultural sector. Tractor tyres and parts, which were earlier taxed at 18 per cent GST, will now be taxed at just 5 per cent. Tractors themselves will see their rate reduced from 12 per cent to 5 per cent.
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https://www.freepressjournal.in/india/congress-considered-impossible-to-implement-gst-during-their-time-says-finance-minister-nirmala-sitharaman