Congress government raised tax on cement while Centre reduced its price by Rs 40: Jai Ram

Leader of the Opposition Jai Ram Thakur today said that Sukhvinder Singh Sukhu-led state government was anti-people and was secretly increasing additional goods tax on cement at a time when the Union Government reduced the Goods and Services Tax (GST) to provide relief to common people. He addressed party functionaries at a symposium on “Next Generation GST Reforms” here.

He said that at a time when the Central Government reduced the price of cement by Rs 40, the Congress government increased its price by Rs 6. “To provide relief to the disaster-hit residents of the state, the Congress government should immediately withdraw the additional goods tax hike and the Chief Minister must put an end to the formula of running the government by imposing taxes,” he added.

Thakur said, “While the Narendra Modi government has been endeavouring to provide relief to countrymen, the Sukhvinder Singh Sukhu government in Himachal Pradesh has been harassing people by imposing taxes. The Prime Minister has implemented the next generation GST to provide tax relief to common people but the state government surreptitiously increased the additional goods tax to Rs 16 at the Cabinet meeting held on September 15, making cement costlier by Rs 6 per bag. This decision was kept under wraps and not communicated to the media, thus exposing its anti-people stance.”

Thakur said that the goods on which the people of the country and the state were required to pay 30 per cent tax during the UPA government led by Manmohan Singh are now subject to mere 5 per cent tax. “During the UPA regime, everyday items like paint, detergent, shampoo, coffee, toothpaste, mineral water, and cosmetics were taxed at 30 per cent, but under the next generation GST, these are now taxed at only 5 per cent, giving sizable relief to people.”

He said, “The entire country is rejoicing over this reformatory step but Congress leaders are distraught and are singing a different tune.” He added that the next generation GST was the biggest ever gift of the Central Government to the countrymen. “Since the implementation of this reform, there has been saving of at least Rs 50,000 on the purchase of a four-wheeler and at least Rs 10,000 on a motorcycle. Thirty-one medicines, primarily used for life-threatening diseases like cancer and thalassemia, have been excluded from the GST’s scope,” he claimed.

Thakur said, “Most of the products used domestically have been placed under 5 per cent or zero per cent GST and 90 per cent of the items, previously in the 28 per cent GST bracket, have been placed in the 18 per cent bracket while 99 per cent items previously in the 12 per cent bracket have been placed in the 5 per cent tax bracket. This is significant relief for people.”

He recounted other initiatives and said, “The Modi government has also raised the income tax threshold limit to Rs 12.75 lakh. These two reforms alone will save the countrymen Rs 2.5 lakh crore every year, thus bringing an appreciable qualitative rise in their lives.”