Mumbai, Jan 10 (IANS) Former Union Minister and Congress General Secretary Sachin Pilot said on Thursday that small, medium, and micro traders, as well as ordinary taxpayers, who are grappling with the “tax terrorism” imposed by the central government led by the Bharatiya Janata Party (BJP), should be freed from the burden of the GST.
He claimed that the complex structure of GST slabs has caused immense difficulties for traders.
Pilot said the working class, middle class, and common citizens contribute the highest GST revenue, while a few wealthy individuals enjoy significant tax benefits.
To address this disparity, Pilot has called for GST reforms, including the introduction of GST 2.0 in the upcoming Union Budget.
The Congress leader told reporters that there is a need for changes in the current cumbersome and fear-inducing GST framework in the Union Budget to be presented on February 1, 2025.
He said that in 2021-22, nearly two-thirds (64 per cent) of GST revenue came from the bottom 50 per cent of the population, while only three per cent came from the top 10 per cent.
He criticised the current GST system as a tax on the poor that continues to increase.
Essential services like health insurance for children and senior citizens are taxed at 18 per cent, and even popcorn is subject to three different GST rates, he added.
Pilot also said that while the Narendra Modi government boasts of record-breaking tax collections every year, it offered a corporate tax cut of Rs 2 lakh crore in 2019 to benefit the rich.
“Prime Minister Modi provides substantial tax cuts for billionaires while placing a heavy tax burden on the poor and middle class. The record GST collection predominantly comes from the middle class and common citizens. It is time to reduce this burden, and the government should take decisive action to introduce GST 2.0 in the upcoming budget,” he urged.
He criticised the BJP’s dramatic midnight launch of GST, claiming it was an attempt to portray it as a groundbreaking achievement.
Pilot clarified that Congress is not against investment but believes it should be done responsibly and systematically.
He accused the BJP government of creating a false impression of a robust economy while GDP growth has significantly declined.
He argued that India should aim for a 10 per cent GDP growth rate but accused the BJP of failing to disclose accurate data.
“During Congress rule, the reality was presented transparently, but under the BJP, only selective data is shared. The lack of transparency in the BJP government is evident,” he added.
Pilot also highlighted the issues of rising unemployment and inflation, stressing the need to focus on per capita income and job creation.
In response to questions about the INDIA bloc, Pilot affirmed that the coalition remains strong.
“Keeping democracy, the Constitution, and the nation’s interests in mind, Congress and several other parties have come together to form the INDIA bloc. The alliance is still robust. Each state has unique conditions requiring specific decisions, but this does not mean the alliance has weakened,” he clarified.
–IANS
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