Imposition of GST on food items will not burden the poor: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on August 1, 2022 asserted that the imposition of Goods and Services Tax (GST) on food items like curd, lassi and wheat will not burden poor families, and asked states and opposition parties to suggest the same. demanded. Taxes were governed by the Narendra Modi administration when it was a decision taken by the GST Council along with all states.

Responding to the debate on price hike in Lok Sabha, Ms Sitharaman remarked that the members’ discussion was based on political angles of price hike rather than genuine data-driven concerns, so their reaction would also be a bit political.

Congress members staged a walkout midway through the minister’s reply saying she had no solution, DMK MPs later followed suit, while Ms Sitharaman called on Tamil Nadu to respond to the issues raised by them. turned to

The finance minister stressed that the government has kept inflation at 7% or less despite several headwinds such as the COVID-19 pandemic and its many waves, the Ukraine-Russia conflict and supply chain disruptions, the finance minister said. Told. The government was working to further reduce the price hike.

“We are trying to bring down inflation as per the expectations of the people. Even today global trade has not normalized, yet we have managed to keep inflation at 7% or below… Now that we are at 7%, and trying to bring it down, however, told us That’s going to be what you’re doing for inflation,” Ms Sitharaman said.

The minister compared this with the trend of retail inflation during the UPA regime, noting that the pace of price rise in 22 out of 28 months was over 9% and crossed 10% nine times. “It should also be remembered when we are being asked why we are not bringing it down to 7%,” she said.

“When questions are not consistently based on facts, the facts have to be reminded. Even now, an opposition member said that inflation was present even before COVID. Yes, inflation did exist. Let us not forget – a short temperate tantrum by the US Fed in 2008 led to problems till 2013, due to which India became one of the fragile five economies,” the minister said.

GST Concerns

Terming the criticism of levying GST on milk and other items as “anti-poor”, Ms Sitharaman said the decision was taken by the GST Council with full consent of all states.

Responding to NCP member Supriya Sule, who said the previous MVA government had written to the Center against implementing these levies, the minister said: “Nobody said anything against it and it was decided. [by the Council] To prevent leakage without burdening the poor. ,

“The levy is only on pre-packaged and pre-labeled goods, so it has no impact on poor people. Similarly, for packs above 25 kg, we are not levying tax as wholesalers can supply to kirana shops without tax. Keeping in mind the poor, anything sold in the open is not being taxed. This should be remembered,” the minister said.

“They say are you taxing rice, curd, lassi, chivda and murmura. If it is bought in open form then I am not taxing them, it is levied only if it is pre-packaged and branded,” she said, adding that several state goods including Tamil Nadu, Telangana, Punjab, Maharashtra and Andhra Pradesh But taxed. Atta, pulses, wheat, rice, gram flour and paneer before the GST regime.

“The decisions of the GST Council are not the decisions of the central government… it has ministers from all the states. But when there is criticism, it is imposed on the Center and on Modi.

“It is wrong to decide something inside and then go out and blame the Centre. Inside, You Agreed on Three Levels of Discussion [at official committees, a ministerial group and the Council], Today, you are changing it as if it was Mr Modi’s decision,” she lamented.

power sector dues

Referring to Prime Minister Modi’s recent comments about freebies, Ms Sitharaman said states should pay the power sector dues of power generation companies as well as discoms. “They are telling us that we are not giving money to the states. Dues of discoms and generation companies will have to be paid otherwise how will they generate electricity for the people? He said, before clearing the dues of states like Tamil Nadu, Kerala, Rajasthan and Telangana.

“We are the fastest growing economy when it comes to India’s economy despite global crises and local problems. Those who talk of GST, I want to explain again that the GST Council is a constitutional body where Modi