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Why Chidamabaram tweeted a 'thank you' to Gujarat

Daily Kiran 2017-11-11 08:52:54




P Chidambaram

found occasion to “thank Gujarat” yesterday after the Centre slashed


rates on more than 200 items.

Why Gujarat? Because Chidambaram is implying that the government’s move yesterday is intended to appease aggrieved traders in the poll-bound state.

Thank you Gujarat. Your elections did what Parliament and common sense could not do.

— P. Chidambaram (@PChidambaram_IN) 1510333706000

Yesterday’s tax cut by the government follows a smaller one last month, when the GST council lowered the tax rates on 27 products, many of them in segments significant to Gujarat’s industry.

Chidamabaram is also viewing the tax rate cut, from 28 percent to 18 percent, as “vindication” for the Congress, which has all along advocated a GST rate of 18 percent.

Congress is vindicated. I am vindicated. The merit of capping GST at 18% is now recognised.

— P. Chidambaram (@PChidambaram_IN) 1510333684000

Congress vice president Rahul Gandhi has in fact been calling the government’s blanket 28 percent GST rate “Gabbar Singh Tax”, after an iconic villain from Hindi cinema. And his party colleague Chidambaram – a former finance minister himself – yesterday said the government has “learned its lesson” albeit late.

When GST rate is capped at 18%, this Govt would have learnt its lesson belatedly.

— P. Chidambaram (@PChidambaram_IN) 1510333665000

The government yesterday made the biggest change in the four-month-old GST regime, moving more than 80 per cent of the items in the top 28 percent tax bracket to lower rates. That will likely make cheaper a whole host of consumer goods, as well as eating out bills.

GST has become a significant poll issue in the Gujarat election campaign, with the Congress hammering away at the BJP-led NDA government at the Centre. It has accused the BJP of being callous and allied with big business, to the detriment of small and medium businesses.

We will not allow BJP to impose a Gabbar Singh Tax on India. They cannot break the back of the small and medium bus…

— Office of RG (@OfficeOfRG) 1510314253000

Yesterday, Rahul tweeted, telling the Centre to “acknowledge your incompetence, shed your arrogance and listen to the people of India.”

Some Suggestions 1. Correct the fundamental flaw in GST architecture to give India a Genuine Simple Tax. 2. Don’…

— Office of RG (@OfficeOfRG) 1510314675000

The government meanwhile said its GST rate cut yesterday shows it is listening to the people. Home minister Rajnath Singh said it displays the “government’s sensitivity towards people”.

The GST Council has offered a big relief to the people by lowering the tax rates on 177 items of daily consumption…

— Rajnath Singh (@rajnathsingh) 1510368996000

Gujarat goes to the polls December 9 in phase one and December 14 in phase two.