Tharoor Hails GST Reforms as Fairer System
Tharoor said the Congress party had long demanded changes in GST rate slabs
Thiruvananthapuram: Congress MP Shashi Tharoor has welcomed the recent GST reforms and termed them a "much-fairer" system, saying they will provide relief to the common people.
Speaking to ANI on Sunday, Tharoor said the Congress party had long demanded changes in GST rate slabs. "We in the Congress party have been asking for this for many years. I think our leaders have been flagging the need to go from four rates to at least just two, or ideally one, one day. When you had four rates, it was confusing, it was difficult. People were not happy about this. So now I think it's a much fairer system and we hope it'll be much better for everyone," he said.
Meanwhile, Congress President Mallikarjun Kharge alleged that US President Donald Trump’s "pressure is mounting" and claimed the Union government brought in the GST reforms with elections approaching.
Kharge also criticised Prime Minister Narendra Modi, linking the GST move with India’s foreign policy under his leadership. He said, "They are doing this now when the elections are close, and Trump's pressure is mounting... We have been practising a non-aligned policy since the time of Jawaharlal Nehru. However, when PM Modi came to power, he made statements like 'Trump is my friend.' Then Trump made statements that ruined the environment in the country and the world. They are not executing our foreign policy properly."
On September 3, the 56th GST Council meeting decided to rationalise GST rates into two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.
The 5 per cent slab covers essential goods and services, including food items, kitchen essentials, agricultural equipment, handicrafts, small-scale industries, medical equipment, and diagnostic kits.
The 18 per cent slab applies to most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods, household items, and professional services. A uniform 18 per cent also applies to all auto parts.
Additionally, a 40 per cent slab has been retained for luxury and sin goods, including tobacco, pan masala, aerated sugary beverages, luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.
Some essential services remain exempt, such as health insurance, life insurance, and certain education and healthcare services.