Is the Congress Government Hindering the Centre’s Digital Revolution in Karnataka?

Bengaluru, July 22 (NationPress) The Karnataka BJP has criticized the state administration for allegedly issuing GST tax notices to small traders, claiming it is hindering the Centre’s digital revolution.

During a press briefing at the BJP's state headquarters, 'Jagannath Bhavan,' on Tuesday, former national general secretary C.T. Ravi, who also serves in the Legislative Council, accused the Congress government in Karnataka of conspiring to obstruct the Digital India initiative by sending notices to small traders.

He remarked that while UPI payment systems have achieved global records, the Congress government has instilled fear and anxiety among the populace.

“It is fostering a climate of fear regarding the Centre’s digital transaction initiatives,” he asserted.

Due to these notices, small traders are increasingly reluctant to accept digital payments, opting instead for cash transactions, as evidenced by signs stating, “UPI payments not accepted, cash only.”

He further alleged that this atmosphere of fear has resulted in reports of bribes being solicited by middlemen and certain officials. He called for the state tax department to rescind the notices and alleviate the distress faced by small traders.

Ravi alleged that Chief Minister Siddaramaiah directed commercial tax officials to enhance tax collection, which precipitated the issuance of notices to small traders.

Reflecting on Deputy Chief Minister D.K. Shivakumar’s remarks, he commented, “It's akin to a monkey consuming the fruit and blaming a goat for it.” He inquired, “Who is the monkey here?”

He pointed out that the commercial tax department was responsible for issuing these notices while Congress attempts to shift blame onto the Centre.

“You issued the notices, but your statements mislead people into believing that the Centre is at fault,” he stated.

Ravi asserted that it is the Karnataka government that has acted as the monkey. “These notices have been sent since 2020, affecting traders dealing in essential goods like milk, fruits, vegetables, eggs, meat, fish, rice, ragi, jowar, and wheat—who are exempt from tax,” he claimed.

He emphasized that no similar notices have surfaced for small traders across the nation—only in Karnataka.

“If states like Kerala and Maharashtra had issued comparable notices, you might argue it was a central decision. But that is not the scenario,” he remarked.

He clarified that in the service sector, tax exemptions apply to businesses with an annual turnover below Rs 1.5 crore. If turnover exceeds that, only a 1% tax is levied—0.5% each for the Centre (CGST) and the State (SGST).

“This is clearly documented in official communications. Why, then, are the CM and Dy CM blaming the Centre’s policy? Accept that the error lies within your own administration. Revoke the notices. Small traders are beginning to protest, and we morally support their demonstrations. BJP leaders will also stand with them,” Ravi vowed.

He asserted that there are effective methods to generate revenue for the state, urging the government not to place additional burdens on small traders. “Admit that your treasury is depleted,” he implored.

“Bengaluru is the heart of India’s IT sector, which pioneered digital payments. Even vegetable vendors were accepting UPI—this was highlighted in global media. However, the Congress government is now instilling fear. This decision must be reversed,” he demanded.

Ravi criticized Chief Minister Siddaramaiah for claiming no lack of development within the state.

“Instead of attempting to persuade opposition parties, listen to your own MLAs like Raju Kage, B.R. Patil, and Deshpande—they are voicing concerns about the lack of development,” he urged.

“If the treasury is overflowing, why have you increased prices for essential services and goods?” he questioned.

“You have imposed a cess on petrol and diesel, raised power tariffs, and increased prices for milk products, metro fares, and bus fares. Yet, in your budget, you’ve borrowed Rs 1.16 lakh crore to cover the fiscal deficit. Despite this, you’re hosting 'Sadhana Samavesha' in Mysuru to boast about your accomplishments,” he chided.

BJP spokespersons M.G. Mahesh, Dr. Narendra Rangappa, and BJP Mahila Morcha state president K.C. Manjula were also present at the press conference.