Congress MP Shashi Tharoor has welcomed the recent Goods and Services Tax (GST) reforms, describing them as a “much fairer” system that will provide relief to the common people and prove beneficial for everyone.
Speaking on Sunday, Tharoor said the Congress party had been demanding changes to the GST rate slabs for several years, stressing that the earlier structure had been both complicated and unfair.
“We in the Congress party have been asking for this for many years. I think our leaders have been flagging the need to go from four rates to at least just two, or ideally one, one day, because this is actually unfair to people. When you had four rates, it was confusing, it was difficult. People were not happy about this. So now I think it’s a much fairer system and we hope it’ll be much better for everyone,” the Congress MP said.
Earlier, Congress President Mallikarjun Kharge criticised the Union government, claiming that US President Donald Trump’s “pressure is mounting” and that the reforms were introduced with elections approaching. He also accused Prime Minister Narendra Modi of mismanaging foreign policy and bowing to US pressure.
“They are doing this now when the elections are close, and Trump’s pressure is mounting. These people kept saying that China was not allowed to infiltrate into the country, and now PM Modi himself went and met them… If we are supporting them, that doesn’t mean they can make arbitrary decisions… We have been practising a non-aligned policy since the time of Jawaharlal Nehru. However, when PM Modi came to power, he made statements like ‘Trump is my friend.’ Then Trump made statements that ruined the environment in the country and the world. They are not executing our foreign policy properly,” Kharge said.
The comments come after the 56th GST Council meeting on September 3, where it was decided to rationalise GST rates into two slabs of 5 per cent and 18 per cent by merging the existing 12 per cent and 28 per cent rates.
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Under the new system, the 5 per cent slab covers essential goods and services, including food and kitchen items such as butter, ghee, cheese, dairy spreads, pre-packaged snacks, bhujia, mixtures and utensils; agricultural equipment; handicrafts and small-scale industries; as well as medical equipment and diagnostic kits.
The 18 per cent slab has been set as the standard rate for most goods and services, including automobiles such as small cars and motorcycles up to 350cc, consumer goods like electronic items and household goods, along with some professional services. A uniform 18 per cent rate will also apply to all auto parts.
Additionally, a 40 per cent slab remains for luxury and sin goods, including tobacco and pan masala, products such as cigarettes, bidis and aerated sugary beverages, as well as luxury vehicles, high-end motorcycles above 350cc, yachts and helicopters.
Some essential services and educational items continue to remain exempt from GST, including individual health, family floater and life insurance, as well as certain services related to healthcare and education.
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