Haven’t given up on 18 per cent cap on GST, says Kharge

M. Mallikarjun Kharge, leader of the Congress in the Lok Sabha, on Sunday said that the party has not given up its demand for capping Goods and Services Tax at 18 per cent. He said they would raise the issue when the two Bills pertaining to State tax and Central tax concerning GST are moved in Parliament after the ratification of GST by the States.

Speaking after inaugurating the newly constructed NEKRTC bus stand at Afzalpur town, constructed at a cost of Rs. 2.75 crore, Mr. Kharge said the main concern of the party was the impact on the indirect taxes on consumers.

He said that owing to strong resistance from the Congress, the Union government had removed the clause on one per cent Service Tax from one State to another and had also agreed to the constitution of a dispute redressal forum headed by a Supreme Court judge.

However, the government did not agree to the demand to cap GST at 18 per cent.

Mr Kharge said that the absence of a cap would result in a free hand for the government to impose indirect tax, increasing the tax burden on the common man. “We will raise this issue when the Bills are moved in Parliament later,” he said.

UPA’s baby

Mr. Kharge said GST was the previous UPA government’s baby and when the Bill was moved at the time, the BJP and all BJP-ruled States had vehemently opposed it. “Strangely, the BJP, after coming to power at the Centre, brought back the same Bill with a few changes. We don’t know why they first opposed it and then adopted it.”

He also said he had chaired a review meeting of the Hyderabad Karnataka Region Development Board on Saturday and directed its officials to speed up works and utilise the funds granted in time.

Mr. Kharge said that the amendment to Article 371 of the Constitution has come as a boon to the people of the region by hastening development in the Hyderabad-Karnataka region.

Medical Education Minister Sharan Prakash Patil, who is also in charge of the district, also spoke on the occasion. Afzalpur MLA Malikayya Guttedar presided over the function.