CPI(M) State Secretary G. Ramakrishnan on Wednesday said that the rollout of the goods and services tax has affected small manufacturers, traders, and people from middle- and lower-middle classes severely.
He said that the new tax regime has hiked the prices of LPG gas cylinders and food served in restaurants. “Many things have become more expensive. Around 500 products that were previously not taxed have been taxed. Eighteen percent tax has been levied on note books and sanitary napkins. In the name of reform, the Centre has imposed more taxes on the people,” said Mr. Ramakrishnan.
Pointing out that there are already protests by the film industry and the cracker industry in Tamil Nadu against taxation, he said that small industries are planning to strike from July 21.
“One country, one tax is a sham. Why wasn’t petrol and diesel brought under the GST? While implementation has been a problem, the Centre has favoured corporates and has been unfair to small industries and traders,” he said.
He further pointed out that all States have been given an equal footing irrespective of their GDP. “With the Centre dominating the GST Council, without which you cannot change the laws, it impinges on the State’s ability to fix taxes. Previously, Parliament and State assemblies had the power to fix taxes; now the GST Council has the power. It is against democracy.”
