The proposal of the Centre to increase the GST rates will lead to spiralling of prices of essential commodities, said president of Tamil Nadu Vanigar Sangangalin Peramaippu A.M. Vickramaraja.
Talking to reporters here on Wednesday after the Chamber of Commerce’s zonal executive meeting, Mr. Vickramaraja said that when GST was introduced, Prime Minister Narendra Modi said that the expectation of the Government was to collect ₹ 1 lakh crore. However, the present GST collection was ₹ 1.40 lakh crore.
"In this situation, scrapping the 5% GST slab and increasing the tax will lead to increase in the price of essential commodities," he said.
Stating that the Centre had not reduced the price of petrol and diesel, Mr. Vickramaraja said that there was a possibility of further increasing the price of fuel following the Russia-Ukraine war.
He said that the Centre should take steps not to increase the fuel price to prevent escalation of the price of essential commodities.
The federation was against the food safety officials taking penal action against shopkeepers.
"If any product is of lower quality, the officials should raid the production unit and even close down them. Instead of that, the officials should not take action that affects traders," he said.
This issue would be discussed at the State conference of the federation to be held in Tiruchi on May 5. Chief Minister M.K. Stalin is expected to take part in the conference, he said.
Its general secretary Govinda Rajulu, treasurer Sadakathullah, regional president Kirubakaran were present.
