Rahul Gandhi’s single-slab GST idea flawed: Jaitley

New Delhi, July 1 (IANS) Union Minister Arun Jaitley on Sunday attacked Congress President Rahul Gandhi’s idea of a single slab GST for India, terming it flawed.

He added while there would be scope to merge some of the mid-category tax slabs depending on the collections going up, but a single-slab system will not work for India.

“Rahul Gandhi has been advocating a single slab GST for India. It is a flawed idea. A single slab GST can function only in those countries where the entire population has a similar and a higher level of paying capacity,” Jaitley wrote in a Facebook post on completion of one year of the Goods and Services Tax (GST).

“Being fascinated by the Singapore model is understandable but the population profile of a state like Singapore and India is very different,” he said adding that while Singapore can charge 7 per cent GST on food and on luxury goods, that model won’t work here.

“Since GST is a regressive tax, the poor have to be given a substantial relief. Thus most food items – agricultural products and the aam aadmi (common man) used products have to be tax exempt. Some others have to be taxed at a nominal rate. The others could be taxed higher.

“Eventually, as the collections improve, many more items from the 28 per cent category can possibly come down. Only sin products and luxury goods can remain there,” he said.

Jaitley also slammed Gandhi and former Finance Minister P. Chidambaram on their demand to bring petroleum products under GST, saying the Congress Finance Ministers in the states were not ready for it.

He said it was the current government which worked out a formula to ensure that “petroleum products would be included in the Constitution amendment providing for the GST but the council can decide the date from which to bring them into GST”.

“The UPA kept petroleum products permanently outside GST. On the contrary, we brought them back into the Constitution as levyable to GST and can gradually impose the GST when the GST Council so decides.

“For this I would continue to make my earnest efforts and hopefully when the states are more comfortable with the revenue position, it would be an ideal time to strike for a consensus between them,” he said.

Jaitley, who is listed as a minister without portfolio in the Prime Minister’s website, also attacked the Congress-led UPA Government for “losing the confidence of the states” when the previous government tried to implement GST.

“In a move towards the single tax system, the UPA asked the states to abolish the Central Sales Tax (CST). It promised the states that it would give them a compensation in lieu of the CST for a certain number of years.

“The states acted accordingly, abolished the CST and the Central government owed the states several thousand crores as CST compensation. When the states demanded CST compensation, the Centre would look the other way,” he said.

Jaitley added that when he took over as the Finance Minister, he cleared all the arrears of CST in order to bridge the trust as the states had declared that they would discuss GST only if past CST compensation is paid.

“The CST compensation was paid. The states were then willing to come to the table and move further on the GST,” he said.

Jaitley also said after he took over, he agreed to pay to the states, after discussing in the GST Council, a 14 per cent increase of revenue for the first five years for any loss of revenue and the states jumped for this proposal.

Riding on anti-incumbency, Congress finally captures Telangana

Hyderabad: Nearly a decade after it carved out Telangana, the Congress stormed to power in India's youngest state, riding on anti-incumbency against the KCR-led BRS government. Successfully replicating its Karnataka...

High time Cong stops dictating terms like an elder brother in INDIA bloc: TMC

Kolkata: Following the disastrous performance of the Congress in the recently-concluded Assembly polls in Rajasthan, Madhya Pradesh and Chhattisgarh, the Trinamool Congress said it is “high time that the oldest...

Rahul accepts people’s mandate in MP, Raj, C’garh; says fight for ideology will continue

New Delhi: Former Congress President Rahul Gandhi on Sunday accepted the people's mandate in the states of Chhattisgarh, Rajasthan and Madhya Pradesh and said that the battle of ideology will...

Israel attacks Gaza with 100,000 bombs, rockets since Oct 7

Gaza: The Hamas-controlled Government's Media Office (GMO) in Gaza said that since the ongoing war erupted on October 7, Israel has attacked the besieged enclave with approximately 100,000 bombs and...

Revanth Reddy wins Kodangal by huge margin

Hyderabad: Telangana Pradesh Congress Committee (TPCC) President A. Revanth Reddy on Sunday won the election from Kodangal Assembly constituency by a huge margin. Revanth Reddy defeated sitting MLA Patnam Narender...

IDF kills Hamas militants, destroys tunnel networks in Gaza

Tel Aviv: The Israel Defense Forces (IDF) on Sunday said that it has killed several Hamas militants and also destroyed many tunnel networks of the militant group in Gaza as...

Gauhati HC asks Assam govt to review orders of Foreigners’ Tribunals

Guwahati: Forhad Ali, a resident of Assam’s Bongaigaon, was declared foreigner by a tribunal after noting that his father’s name was written Habi Rahman and Habibur Rahman in different documents....

Shivraj, Kamal Nath lead in MP as vote count continues

Bhopal: With the counting of votes underway for the Madhya Pradesh Assembly polls, Chief Minister Shivraj Singh Chouhan and Congress leader Kamal Nath were leading in their respective constituencies. With...

Over 120 countries back COP28 UAE Climate and Health Declaration

Dubai, Dec 2 (IANS) Over 120 countries backed the COP28 UAE Declaration on Climate and Health on Saturday, delivering a breakthrough moment for health in climate talks. The COP28 Presidency...

Congress slams PM Modi after UGC directs universities to set up selfie points

New Delhi: The Congress on Saturday slammed Prime Minister Narendra Modi after the UGC directed to set up selfie points in all universities, saying he is so insecure in the...

‘Illegal’ to grant bail for a limited duration after court concludes that accused is entitled for release: SC

New Delhi: After a court concludes that an accused is entitled to be enlarged on bail pending trial, granting bail only for a limited duration is illegal, according to the...

No new virus behind China pneumonia outbreak: US CDC

Washington: The recent pneumonia outbreak in China among young children is not caused by any new virus, the US Centers for Disease Control and Prevention (CDC), even as Ohio becomes...

Read Previous

Last works of painter S.H. Raza on exhibition

Read Next

World Cup: Russia edge out Spain to enter QF

Leave a Reply

Your email address will not be published.

WP2Social Auto Publish Powered By : XYZScripts.com