Updated September 6th, 2020 at 15:07 IST

'GST is an attack on poor & reason behind historic decline in GDP': Rahul Gandhi

Congress leader Rahul Gandhi said as a result of the NDA's GST, the Government of India is unable to provide the GST compensation money to the states today.

Reported by: Gargi Rohatgi
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Continuing his attacks on the PM Modi-led Central government regarding the current economic situation in the country, Congress leader Rahul Gandhi stated that the major reason for the "historic decline in Gross Domestic Products (GDP) is the Gabbar Singh Tax (GST) of the Modi government". He took to Twitter to posted a video of his new series titled "how the Modi government has destroyed Indian economy". 

GDP has destroyed the Indian economy

Rahul Gandhi in his third video, said that National Democratic Alliance (NDA)'s Gross Service Tax (GST) is not a simple tax system but an attack on the poor, including small-scale businessmen, shopkeepers and farmers. "Another major reason for the historic decline in GDP is the Gabbar Singh Tax (GST) of the Modi government. It destroyed many things like- Millions of small businesses, the future of millions of jobs and youth and the economic situation of states. GST means economic apocalypse," said the Congress leader's tweet (translated from Hindi). 

India's GDP growth rate has decreased to 23.9 per cent in the first quarter of the current fiscal due to COVID-19 induced lockdown. In his video, Rahul Gandhi said, "GST is the second attack on the informal sector of the economy. GST was UPA's idea which professed that there will be one tax, least tax, and a simple tax. But NDA's GST is completely different in which there are four different types of taxes and up to 28 per cent tax. It is complicated and not easy to be understood by many. The small and medium businesses cannot file their taxes under NDA's GST. But the big companies can easily file it after getting help from 5 to 15 accountants."

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"There are 4 types of rates because the government wants those who have the reach and resources can manipulate the system. Those who do not have reach and resources can not do anything. Who are resourceful? 15 to 20 corporates and whatever changes they want, they can change under this GST regime," he added. 

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Rahul Gandhi's previous two attacks 

Congress leader alleged that due to NDA's GST, the central government has failed to give any money to states collected through tax for the first time. As a result, the states are not able to pay to teachers and employees. Therefore, GST has failed and it is a direct attack on the poor & MSMEs. "GST is not the correct tax system and we all should unite to fight against the attack," he said. 

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In the second video released on September 3, Rahul Gandhi had said that demonetisation was an attack on India's informal sector which mainly included poor labourers, farmers and small shopkeepers. In the first video released on August 31, Rahul Gandhi accused PM Modi's government of destroying the 'informal sector' of the country and trying to suppress it. According to him, BJP has been attacking the informal economy since the last 6 years through GST, demonetization and nation-wide lockdown. 

READ | Rahul Gandhi Attacks Govt On Informal Economy; Lists Decisions 'turning People To Slaves'

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Published September 6th, 2020 at 15:07 IST