Former union minister and AICC general secretary Sachin Pilot alleged on Thursday that the small, medium, and micro traders are grappling with the tax terrorism imposed by the BJP government.
Though the working class, middle class, and common citizens contribute the highest GST revenue, only a few wealthy individuals enjoy significant tax benefits, he said.
To address this disparity, Pilot has called for reforms in GST through the introduction of GST 2.0 in the upcoming Union budget to be presented on February 1, 2025.
Speaking at a press conference at Gandhi Bhavan, Pilot emphasized the need for changes in the current cumbersome and fear-inducing GST framework in the Union budget. He pointed out that in 2021-22, nearly two-thirds (64%) of GST revenue came from the bottom 50% of the population, while only 3% came from the top 10%.
He criticized 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%, and even popcorn is subject to three different GST rates. Pilot further stated that while the Narendra Modi government boasts of record-breaking collections every year, it offered a corporate tax cut of Rs 2 lakh crore in 2019 to benefit the wealthy.
"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," Pilot urged.
Pilot also reminded that the GST proposal was originally introduced by Manmohan Singh, which the BJP, including the current Prime Minister Narendra Modi, had vehemently opposed. The BJP had also opposed Congress-led initiatives like Aadhaar, DBT, and FDI in retail but later implemented the same policies after coming to power.
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 the Congress is not against investment but believes it should be done responsibly and systematically.
Pilot 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% GDP growth rate but accused the BJP of failing to disclose accurate data.
"During the 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.
