New GST rates trigger political tussle between BJP and Congress

The heralding of the new GST regime with reduced rates witnessed a political tussle in Karnataka with the BJP challenging the Congress government to reduce its taxes to respond to the Centre’s gesture, while the Congress accused the Centre of looting people in the last eight years through high GST rates and being responsible for the closure of many MSMES. 

Leader of the Opposition in the Assembly R. Ashok, who distributed sweets among people in the market area of Mandya on Monday to mark the new GST regime, accused the Congress government of increasing tax on 25 goods and services in the last two years. 

Claiming that the government did not have money to fund its guarantee schemes that required over ₹60,000 crore, Mr. Ashok alleged that taxes on goods and services had been steeply raised by the Congress government to fund the guarantee schemes. The poor and the middle class people in Karnataka are facing the burden of taxes owing to the Congress government’s action of indiscriminately increasing taxes, he alleged, and urged the government to reduce the taxes at least now. 

The BJP leaders and workers took up a similar exercise in different parts of the State.

Launching a counter-attack, RDPR and IT/BT Minister Priyank Kharge argued that it was “insensitive” to take credit for reducing GST rates as they had been increased by the BJP government itself. 

“You have pushed people into a well and now provided a ladder for them to come up. But instead of admitting that you pushed them into the well, you are claiming credit for providing them with a ladder,” he told the BJP. 

Expressing concerns that the economy had taken a hit and many MSMEs had closed down in the last eight years owing to such a draconian measure of increasing taxes, Mr. Kharge argued that Prime Minister Narendra Modi should take responsibility for it too.

He said the Centre had kept quiet though Congress leader Rahul Gandhi had been demanding that the GST rates should be reduced and had even termed them as Gabbar Singh Tax. “But finally the Centre has reduced the GST rates now being scared of people’s anguish. But they are shamelessly taking credit for reducing the taxes that have actually been increased by themselves,” he said.