GST has reduced burden on common man: FM Nirmala Sitharaman
CHENNAI: Union Finance Minister Nirmala Sitharaman on Thursday said the narrative that the Goods and Services Tax (GST) has become a burden on the common man is wrong. She asserted that the GST has indeed reduced the burden on the common man. Since GST has brought transparency to taxation, it has led to the perception that taxes are burdensome, Sitharaman said while addressing a meeting of the Revenue Bar Association.
Recalling that as per a recent survey by a leading consultancy agency, 84% of industry respondents have responded positively to GST, the union minister said, “Nearly 60% of all consumer items attract a GST rate of 5% or less. That is what the GST has brought in – simplification and reduction in the rate. Less than 3% of consumption items are in the 28% bracket. Therefore, GST has reduced the burden on the common man and achieved the larger principle of reducing rates.”
Before the GST, while states collected taxes, not all taxes were clearly mentioned on the items so the tax burden was not explicitly felt, she said. Sitharaman also denied the charge of the opposition that there is a lot of bitterness and friction in the relationship between the state and the centre over the GST.
“Contrary to the claims that discordant notes guide the finance minister’s meetings, it was the place with the least politics since every finance minister wants better revenue generation and a wider tax base – but every finance minister is also conscious that when they go back to their own constituency, that they should be able to answer people that they are not extracting revenue which is not justified,” she added.
She also pointed out that giving information is a double-edged sword — while it is required for transparency, it has become a tool for the false narrative that the government earns money out of everything.
She said there are items on which we can bring greater simplifications and improvements, but there is general satisfaction that GST has brought in a lot more regulation and ease of doing business.
