Work, wealth, welfare: Congress calls for a 'reset' to economic policy in Lok Sabha poll manifesto

New Delhi: Anchoring its economic policy on “work, wealth and welfare”, the Congress on Friday promised a GST 2.0 replacing existing regime, a Direct Tax Code, scrapping ‘Angel Tax’, lessening the tax burden on MSMES, and a new employment-linked incentive scheme for corporates to win tax credits for additional hiring.

The manifesto calls for a “re-set of economic policy”, as it emphasised that the cornerstone of its ‘Nav Sankalp Economic Policy’ will be jobs while rejecting “BJP’s legacy of job-loss growth”.

It said the best creator of jobs is the private sector, especially MSMEs, and the party will support large, medium, small and micro enterprises in their endeavour to create jobs and produce goods and services.

Without naming anyone, the manifesto said the party will ensure a “level playing field for all” while it is “opposed to monopolies and oligopolies and crony capitalism”.

Top Congress leader Rahul Gandhi has been critical of Adani Group and he has accused its increasing wealth to its promoter’s proximity with Prime Minister Narendra Modi, a charge denied by both.

It said the NDA government had inherited a Rs 100 lakh crore economy in 2014 but it “wasted the golden opportunity” and if the UPA had continued in office, the economy would have doubled and stood at Rs 200 lakh crore by now.

“Alas, due to the BJP’s mismanagement, the GDP will reach a level of only Rs 173 lakh crore by the end of 2023-24 falling short of a target that was unachievable. The Congress is committed to rapid growth and generation of wealth. We have set a target of doubling the GDP in the next 10 years,” it said.

It promised to “remove the current environment of distrust and fear”, and create a healthy ecosystem where private enterprises, regulatory authorities, tax authorities and the government will work in a spirit of mutual cooperation and respect.

A Direct Taxes Code will be enacted to usher in an era of transparency, equity, clarity and impartial tax administration of direct taxes, it said, adding that it will maintain stable personal income tax rates throughout its term so that the salaried class is not subjected to rising tax rates and have the clarity to plan their finances over a medium-to-long period.

The grand old party also promised to eliminate 'Angel tax' and “all other exploitative tax schemes” that inhibit investment in new micro, small companies and innovative start-ups, the manifesto said.

“Congress will replace the GST laws enacted by the BJP/NDA government with GST 2.0. The new GST regime will be based on the universally accepted principle that GST shall be a single, moderate rate (with a few exceptions) that will not burden the poor,” it said.

The manifesto also said the Congress resolved to make India a manufacturing hub by raising the share of manufacturing from 14 per cent to 20 per cent of GDP in the next five years.

“The most immediate objective will be to restore a healthy, fearless and trustworthy climate for businesses. While a Congress government in 1991 abolished industrial licensing and controls, the independent regulatory regime that was put in place has deteriorated into a system of overt and covert controls,” it said.

“We will conduct a comprehensive review of the current rules and regulations and repeal or amend them in order to restore freedom to industry, business and trade,” it added.