Finance Minister Nirmala Sitharaman on Saturday said that the Opposition parties were “misleading the country” on Goods and Services (GST) Tax.
Sitharaman said that the decision to keep four tax slabs was not taken by the BJP, but by the Empowered Committee of state finance ministers, PTI reported.
The GST council has approved a two-tier structure of 5 per cent and 18 per cent taxes, as well as a 40 per cent slab, which will come into effect from September 22with the beginning of Navratri. The additional slab of 40 per cent was introduced for so-called sin goods and luxury items.
The GST rate for common goods stands at 5 per cent, and 18 per cent for the rest of the items.
The GST earlier had a four tier structure of 5%, 12%, 18% and 28%. Therefore, the 12% and 28% rates have been removed from the structure.
In an interview with PTI, Sitharaman said that the decision was a “people’s reform”, adding that the rate rationalisation would benefit all families, and boost consumption in the economy.
The Union Finance Minister said that the reform would reach “140 crore people”, adding that there would be no individual “untouched by GST”. “The poorest of the poor also have something small that they buy, touched by GST,” Sitharaman told PTI.
Sitharaman had, earlier, said that the reform was not just focused on “rationalising rates”, but also included structural changes. “It’s also about ease of living, so that businesses can conduct their operations with the GST with great ease,” the Union Finance Minister said.
Sitharaman also said that the reforms had been undertaken with a focus on “common man”. “Every tax on the common man’s daily use items has undergone a rigorous review, and in most cases, the rates have come down drastically,” she said.
