GST not a tax system, but an attack on the poor: Rahul Gandhi

Former Congress President Rahul Gandhi on Sunday kept up the heat on the Modi government describing the Goods and Services Tax (GST) rolled out by it as an “absolute failure”.

“GST is not a tax system, it is an attack on the poor,” Rahul said in a short video, the third in the series on the economy.

Rahul has been targeting the Modi government over its handling of the economy claiming that three-pronged attack – demonetisation, faulty GST and lockdown was aimed at hurting the small and medium businesses, farmers and labourers.

Also read: Demonetisation an attack on India's unorganised sector: Rahul Gandhi

“NDA's GST is completely different. Four different tax slabs, up to 28%, complicated and difficult to understand. Small and medium businesses cannot pay this tax. The big companies can easily pay it by putting 5-10-15 accountants to do the job,” Rahul said.

The former Congress President said it was the result of NDA’s GST that the Centre has been unable to provide GST compensation to the state governments.

“The states are unable to give money to state employees, teachers, etc. Hence this GST is an absolute failure. Not only is it unsuccessful, it is an attack on the poor and on the small and medium businesses,” he said.

The sharp attack also comes ahead of the monsoon session of the Parliament when the opposition was planning to corner the government on issues such as the state of the economy, Chinese transgressions in Ladakh, the handling of the Covid-19 situation.

Chidambaram offers tips to government

Former Finance Minister P Chidambaram offered a six-point action plan to stimulate demand and revive the economy, with an advice to borrow money without any hesitation.

“Transfer some cash to the poorest 50% of families; offer food grains to all families, those who need it will take it; increase spending on infrastructure projects; use food grain stocks to pay wages in kind and start massive public works; recapitalise banks to enable them to lend; and pay arrears of GST compensation to states,” Chidambaram said.

“All the above will need money. Borrow. Do not hesitate,” the senior Congress leader said.

To raise money, Chidambaram asked the government to relax the FRBM norms and borrow more this year; accelerate disinvestment; use the offer of USD 6.5 billion by IMF, WB, ADB; and as a last resort, monetise part of the deficit