Lucknow: Supriya Shrinate, National Spokesperson of the Indian National Congress and Chairperson of the Social Media & Digital Platforms Committee, held a press conference at the state Congress headquarters, Nehru Bhavan, where she accused the BJP-led Modi government of imposing heavy taxes on the common people. She demanded relief for the citizens from the GST (Goods and Services Tax), especially for essential household items and health insurance, in the upcoming budget.
The press conference was attended by prominent leaders such as Dr. C.P. Rai, Media Chairman, State Spokesperson Umashankar Pandey, Anshu Awasthi, Sachin Rawat, and Shalini Singh, Vice Chairperson of the Social Media Cell.
Supriya Shrinet Questions the Budget’s Impact on the Economy and Common People
Supriya Shrinate emphasized that the upcoming budget, which is set to be presented shortly, would shape the future of the country. She posed crucial questions about the economy’s future, including whether it would strengthen the job market, drive consumption, stimulate investment, and reduce inflation. She also questioned whether the common people would receive any relief from the excessive taxes being imposed on them.
She remarked, “For the first time in independent India, under this suit-boot government, the taxes from income tax and corporate tax are far lower than the taxes being taken from the common man.” Shrinate pointed out that the government was imposing hefty taxes through the GST system, which she described as a ‘Gabbarsingh Tax’. According to her, the GST system has not only increased the tax burden on essential goods like flour, yogurt, medicines, and education but even basic items like popcorn and old cars are being heavily taxed.
GST’s Impact on the Poor and Middle Class
Shrinate further elaborated on the regressive nature of the GST, stating that the tax system primarily burdens the poor and middle class. “GST is a consumption tax, which means the poor, who spend most of their income, end up bearing the brunt of it, while the wealthy save a significant portion of their income,” she said. She revealed that 64% of the GST collection comes from the bottom 50% of the population, while only 3% comes from the top 10%. This unequal distribution of the tax burden, she argued, exacerbates the economic struggles of the poor and middle class.
The Congress leader also criticized the government’s taxation on health insurance and other essential services, with GST rates as high as 18%. This, according to her, has made crucial services like healthcare less accessible to the public, particularly for children and senior citizens.
Falling Consumption and Economic Strain
Shrinate highlighted the deteriorating economic conditions under the Modi government, citing the sharp decline in consumption, which accounts for two-thirds of India’s GDP. “Due to rising taxes, inflation, and unemployment, people are forced to reduce their spending on essential items like food and education,” she added. The Congress leader also pointed out that people were increasingly relying on future savings to make ends meet, and domestic savings had dropped to the lowest level in 50 years. Moreover, defaults on loans had risen by 30%, and many people had resorted to mortgaging their jewelry.
GST’s Impact on Employment and Small Businesses
Supriya Shrinate also criticized the government for imposing an 18% GST on job application forms, which she described as a reflection of the BJP’s anti-youth and anti-poor policies. She called out the BJP’s selective tax cuts for the corporate sector, which she claimed had benefited capitalists to the tune of ₹4.5 lakh crore.
She also discussed the complexities of the current GST system, with multiple tax slabs ranging from 0% to 28%. This, she argued, has caused confusion among consumers and made it difficult for small businesses to function. She pointed out that fraud in the GST system had resulted in ₹2 lakh crore in tax evasion in 2023-24, with ₹35,132 crore worth of input tax credit fraud being reported.
A Call for Reformed GST and Budget Relief for the People
In light of the government’s handling of the economy, Shrinate demanded relief for the people in the upcoming budget. She urged the government to remove GST on essential goods and health insurance, as well as to implement a simplified GST structure with fewer tax slabs. She also suggested that Modi could adopt Congress’s proposed GST 2.0 scheme, which aims to provide a simpler and more transparent tax system for the people.
GDP Growth and Economic Decline Under Modi
Shrinate also referred to the government’s own statistics, which indicated that India’s GDP growth was expected to be only 6.4% for the year, marking the lowest growth rate in four years and the lowest post-pandemic growth. She pointed out that the Modi government had led India into a period of low growth and crushing inflation, which, she argued, had negatively impacted the common man.
She concluded by accusing Modi of wrecking India’s economy and misleading the public with his propaganda, emphasizing that the real economic performance of the country under the Modi government had been underwhelming.
