Senior Congress leader P. Chidambaram said on Thursday regarding the Goods and Services Tax (GST) reforms that the reduction in GST rates is welcome, but this step has been taken too late.
The former Finance Minister also said that the current design of GST and its multiple rates should never have been implemented in the first place. Chidambaram posted, ‘Rationalizing GST and reducing rates on many goods and services is welcome, but it is 8 years too late. The current design of GST and the rates that persisted until today should never have been decided upon.’
‘We have been strongly voicing our opposition to the design and rates of GST for the past 8 years, but our arguments were ignored. It will be interesting to speculate what prompted the government to make changes: sluggish growth? Rising household debt? Falling domestic savings? Elections in Bihar? Trump and his tariffs? A combination of all these reasons?’
Chidambaram’s sharp criticism of government policies
The GST Council on Wednesday unanimously approved comprehensive reforms to the Goods and Services Tax. These reforms include reduced GST rates on commonly used products such as soap, bicycles, televisions, and personal health and life insurance policies.
A two-tier tax structure of 5 percent and 18 percent has been approved for GST. Prime Minister Narendra Modi had announced the simplification of the tax structure in his Independence Day address. In line with that announcement, the GST Council has approved sweeping changes to the tax rates.
