Taking an indirect jibe at GST being called as Good and Simple Tax by the Centre, the Congress on Saturday termed the Goods and Services Tax(GST) as good for government and bad for people.
While addressing a press conference, former union minister and senior Congress leader, Kapil Sibal, pointed out the various ‘shortcomings’ of the new tax regime that was implemented on July 1.
“There are many GST tax slabs- 0. 25, 03, 05, 12, 18, and 28 percent. The sad part is that apart from the GST the state governments are required to also levy municipal tax,” Sibal said.
Citing an example, the leader said, “If a cinema ticket is less than Rs. 100 then the rate of GST is 18% and if more than Rs. 100 then it is 28%.”
“It means a common man will have to pay 58 percent entertainment tax on a cinema ticket costing more than Rs 100, and 48 percent for cinema ticket less than Rs 100”, he added.
“In our country, the cinema is the only mode of entertainment for the common man. What type of tax is it? On the other hand, the Maharashtra government has decided to levy extra 2 percent on road tax apart from GST in order to cover up its losses,” Sibal said.
“There is no GST for loose wheat flour and biscuits whereas the packaged ones are taxed”, he added.
He questioned, ‘who buys loose wheat flour and biscuits these days as everything consumable good is sold in packaged form, which is good also’.
The Congress leader wondered what is the motivebehind these GST provisions, which was aimed at making taxation system simple.
He also questioned the 5 % GST on the clothes merchants “who were never taxed till the new tax regime was launched”.