NEW DELHI: The Congress on Friday took a swipe at the Bharatiya Janata Party over the controversial popcorn tax and claimed that India was locked in a “pernicious cycle of low consumption – low investment – low growth – low wages”.
Expressing concern over the “disappointing” latest GST numbers, Congress general secretary in-charge communications Jairam Ramesh asked the Centre to focus on the complexities of the economy instead of imposing tax on popcorn.
“The litany of demoralising news on the economic front from the deceleration in growth to the poor GST revenue collections — demands that the government apparatus shift its focus from administering tax on popcorn to engaging with the complexities of the economy,” Ramesh said in a statement.
“The Union budget, due to be presented next month, must provide income support to India’s poor and tax relief for the middle classes. A GST 2.0 — a truly Good and Simple Tax like the Indian National Congress had envisaged in its Nyay Patra for the 2024 Lok Sabha Elections — must be instituted,” he added.
Ramesh emphasised the need to end tax and investigative agency practices that discourage private investment and cause entrepreneurs to leave.
According to the Congress leader, December’s data revealed GST collection receipts increased at the second-lowest rate in three-and-a-half years. He noted that net GST collections, after refund adjustments, showed only 3.3 per cent growth, marking the lowest in FY25.
The government achieved an 8.6 per cent increase in GST collections during the first three quarters of the current financial year, Ramesh pointed out. He cautioned against using reduced revenue collections as justification for cutting social welfare programmes like MGNREGA, particularly when rural wages remain static and consumption is declining.
He concluded by advocating for government expenditure to stimulate economic growth.
