Liberate Small and Medium Traders from GST Strain: Sachin Pilot

Mumbai, Jan 10 (NationPress) Former Union Minister and Congress General Secretary Sachin Pilot asserted on Thursday that small, medium, and micro traders, as well as ordinary taxpayers, who are enduring the 'tax terrorism' enforced by the central government under the Bharatiya Janata Party (BJP), should be liberated from the GST burden.

He indicated that the intricate structure of GST slabs has led to considerable challenges for traders.

Pilot emphasized that the working class, middle class, and average citizens contribute the largest share of GST revenue, while a select few affluent individuals reap substantial tax advantages.

In response to this inequality, Pilot has advocated for GST reforms, proposing the launch of GST 2.0 in the forthcoming Union Budget.

The Congress leader informed reporters that there is a pressing need for modifications in the current burdensome and intimidating GST framework ahead of the Union Budget set for February 1, 2025.

He pointed out that in the fiscal year 2021-22, approximately two-thirds (64 percent) of GST revenue originated from the lower 50 percent of the populace, while a mere 3 percent was contributed by the top 10 percent.

He criticized the existing GST structure as a regressive tax that continues to escalate.

Basic services, such as health insurance for children and the elderly, are taxed at 18 percent, and even popcorn is subjected to three distinct GST rates, he noted.

Pilot also mentioned that, while the Modi administration revels in record-breaking tax collections annually, it implemented a corporate tax reduction of Rs 2 lakh crore in 2019 that primarily benefited the wealthy.

"Prime Minister Modi grants generous tax reductions to billionaires while imposing a heavy tax burden on the lower and middle classes. The substantial GST collections largely come from the middle class and ordinary citizens. It's high time to alleviate this burden, and the government should take decisive measures to unveil GST 2.0 in the upcoming budget," he urged.

He condemned the BJP's dramatic midnight introduction of GST, alleging that it was an effort to present it as a monumental accomplishment.

Pilot clarified that Congress does not oppose investment but insists it should be conducted responsibly and systematically.

He accused the BJP administration of creating a misleading image of a robust economy while the GDP growth has markedly declined.

Pilot argued that India should target a 10 percent GDP growth rate but criticized the BJP for failing to provide accurate data.

"During Congress's tenure, the reality was transparently shared, whereas under the BJP, only selective data is disclosed. The lack of transparency in the BJP government is apparent," he added.

Pilot also outlined the problems of escalating unemployment and inflation, underscoring the necessity to focus on per capita income and job creation.

In response to inquiries about the INDIA bloc, Pilot confirmed that the coalition remains steadfast.

"With democracy, the Constitution, and the nation's welfare in mind, Congress and various other parties have united to form the INDIA bloc. The alliance is still strong. Each state presents unique conditions that necessitate specific decisions, but this does not imply the coalition has weakened," he clarified.