NEW DELHI, Jan 3: The Congress on Friday expressed concern over the “disappointing” latest GST numbers and urged the government to focus on the complexities of the economy instead of imposing tax on popcorn.
In a statement on the latest GST numbers, Congress general secretary in-charge communications Jairam Ramesh claimed India was locked in a “pernicious cycle of low consumption – low investment – low growth – low wages”.
He said, “The litany of demoralising news on the economic front from the deceleration in growth to the poor GST revenue collections — demands that the government apparatus shift its focus from administering tax on popcorn to engaging with the complexities of the economy.”
Related Posts:
“The Union budget, due to be presented next month, must provide income support to India’s poor and tax relief for the middle classes. A GST 2.0 — a truly Good and Simple Tax like the Indian National Congress had envisaged in its Nyay Patra for the 2024 Lok Sabha Elections — must be instituted,” he added.
He also said tax and investigative agency terrorism that was deterring private investment and leading to flight of entrepreneurs must end.
The Congress leader said the latest data from December showed that GST collection receipts increased at the second-slowest pace in three-and-a-half years this past month.
“Net GST collections, after adjusting for refunds, slumped to 3.3 per cent growth — the lowest in FY25. This is concerning news, on several fronts,” he claimed.
Ramesh said the government recorded an increase in GST collections of 8.6 per cent in the first three quarters of the current financial year.
“The budget estimates had factored in an 11 per cent growth. This slowdown in revenue collections cannot be justification for the government to further cut down on social welfare programme like MGNREGA, at a time when rural wages have been stagnant and consumption slackening,” he said.
Government expenditure must instead be used as a stimulus for the economy, he asserted. (PTI)
