Under the chairmanship of Finance Minister Nirmala Sitharaman, the GST Council reformed taxes, reducing them to two slabs. Congress MP Shashi Tharoor described this as fair. He stated that the Congress had been demanding such a change for a long time, and it would provide relief to the general public.
GST Reforms: The Goods and Services Tax, or GST, has been implemented in India for several years. Initially, the government claimed it would simplify tax collection and establish a uniform system across the country. However, the presence of four different tax slabs often led to difficulties for the common people and traders.
A significant change was made in the recent GST Council meeting, chaired by Finance Minister Nirmala Sitharaman (Nirmala Sitharaman) . Instead of four slabs, there will now be only two. This decision is set to be implemented from September 22.
Now Only Two Slabs
Previously, the GST system had slabs of 5 percent, 12 percent, 18 percent, and 28 percent. Many products fell into different categories, complicating tax calculations and affecting consumers. Following the new reform, there will now be only two slabs: 5% and 18%. This means essential goods will be taxed at a lower rate, and most goods and services will be subject to an 18% tax.
Shashi Tharoor's Statement
Congress MP Shashi Tharoor (Shashi Tharoor) has welcomed these reforms. He stated that this change is more equitable (fair) and will be beneficial for the common people.
Tharoor said:
"The Congress party has been demanding this for many years. Our leaders have consistently said that having four rates is neither practical nor equitable. Now that there are only two slabs, the system will become simpler and more transparent."
He further added that the long-standing stance of the Congress party has been that there should either be two rates or a single ideal slab. This will eliminate confusion among people and make the tax structure more simplified.
The Problem with Four Rates, Why it was an Issue
Shashi Tharoor also questioned the old system. He said that the four rates were troubling for people. It increased confusion, and traders also struggled to understand the applicable tax on different products.
Often, similar items fell under different tax rates. This caused distress not only to consumers but also to small shopkeepers and businesses. Tharoor believes that this problem will now be resolved, and the system will be more equitable.
How the Common Public Will Get Relief
The biggest benefit of the new reforms will be for the general public. Consumers will now find it easier to understand how much tax will be levied on their goods or services. The 5% slab will include essential items like grains, medicines, and certain daily necessities. The 18% slab will encompass most goods and services. This will create a simpler system for taxpayers and also reduce the possibility of tax evasion.
What is the Government's Objective
Finance Minister Nirmala Sitharaman stated after the council meeting that this step has been taken to provide relief to the public and simplify the system. The government's aim is to make the tax system so simple that people do not need the help of an expert. The government believes that the reforms will reduce the compliance burden and have a positive impact on tax revenue.
Congress's Stand
The Congress party has long argued that the GST structure is too complex. Party leaders have stated that the promise of 'One Nation, One Tax' can only be considered fulfilled when GST rates are simple and fewer. Shashi Tharoor's statement reinforces this policy. He reiterated that having multiple rates amounts to injustice towards people. The current reform will bring about a better system.
