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  1. GST impact on Indian economy: P Chidambaram says new tax regime fails to achieve the aim it was meant for

GST impact on Indian economy: P Chidambaram says new tax regime fails to achieve the aim it was meant for

Speaking about the launch of the Goods and Services Tax as well as its implications, former Union Finance Minister P Chidambaram said that the aim was for one indirect tax to subsume all the other indirect taxes, but this GST fails to achieve that.

By: | New Delhi | Updated: July 6, 2017 6:05 PM

GST, Chidambaram, Prime Minister Narendra Modi,  Goods and Services Tax, President Pranab Mukherjee

GST impact: Speaking about the launch of the Goods and Services Tax as well as its implications, former Union Finance Minister P Chidambaram said that the aim was for one indirect tax to subsume all the other indirect taxes, but this GST fails to achieve that. The senior Congress leader also said this is not the GST which UPA envisaged, it’s imperfect. He further said that the government made a mockery of GST so the Congress will press for reduction in rates and 18 per cent cap, according to PTI. Pressing on Congress demand, Chidambaram said, petroleum, electricity and real estate be brought under GST. GST was launched on the intervening night of June 30 and July 1 on the midnight hour by President Pranab Mukherjee along with Prime Minister Narendra Modi in Parliament’s iconic Central Hall. The Opposition had boycotted the meet and the reason provided was that the nation was not ready fo it.

While the Bharatiya Janata Party (BJP) had earlier accused the Congress of not being supportive or encouraging on the issue of the Goods and Service Tax (GST) and stated that the opposition had objected on the tax rate fixing only at the final moment. BJP MP Subramaian Swamy told ANI, “Initially, when the GST was being decided, I was the only one opposing to it on the basis of the Constitution. I had objection on the rate fixing, but then Prime Minister Narendra Modi agreed to my notions and opinion. That time no opposition party supported me nor took my opinion into consideration. They opposed it at the final moment which is not right. Also, they made a unanimous decision at every meeting.”

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Earlier, Delhi Congress chief Ajay Maken had accused the government of not passing on the benefits of drop in global crude oil prices to people of the country. “The government is making profits to the tune of Rs 3 lakh crore every year by not slashing prices of fuel here. On the one hand, it is making profits and on the other, it is burdening the poor by imposing GST on the LPG cylinder,” Maken added.

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