National

Chidambaram Slams GST, Calls It Mockery Of Original Law

न्यूज़ वर्ल्ड इंडिया | 1
2427
| July 6 , 2017 , 19:42 IST

Almost a week after the new taxing system, GST was rolled out by the Modi government in a late night session on June 30, the former Minister of Finance P. Chidambaram has come out attacking the Goods and Services Tax.

In a press conference at the party headquarter, Chidambaram calling the GST law a "mockery" and inflationary with a multiplicity of rates. He said the nation was "underprepared" for the new indirect tax regime and added that the time of the rollout should be been deferred by two months.

"The GST was envisaged as a single rate of tax on all goods and services that will replace practically all indirect taxes... A 'single' GST rate means a Standard rate as well as a Standard Plus rate (on demerit goods) and a Standard minus rate (on merit goods). Some goods and services will also be totally exempt," Chidambaram said.

"This is the GST that the Congress party and the UPA government had visualised and which I had announced on 28-2-2006 as our goal. Mr Yashwant Sinha (Finance Minister in the Vajpayee government) has also confirmed that this was the GST we should have designed and implemented," he added.

He said what has been implemented; however, is a GST with seven, or possibly more, rates. 

Chidambaram said "this is a very, very imperfect GST. This is not the GST we had envisaged and I had announced on February 28, 2006. Nor was it the one envisaged by Yashwant Sinha, who had chaired the Empowered Committee, nor Pranab Mukherjee, nor Manmohan Singh."

“It is a mockery of GST. When we have rates like 0.25, 3, 5, 12, 18, 28 and 40, and possibly more because of the discretion vested with states, how can we call this a 'One Nation, One Tax' regime,” he asked.

The Congress leader said the Centre should have engaged the leaders of political parties to forge a consensus on three rates but failed to do so.The Congress party on Thursday demanded a cap of 18 per cent and

The Congress party on Thursday demanded an 18 percent cap and the inclusion of petroleum products, electricity and real estate in its ambit.

Kris Gibson

I wouldn't fight against the GST as much because I know this is what is necessary for the government. I've wanted to find more here about the public reaction following it, and I have done so over here. I'm really pleased.