ICRA welcomes GST rate cut on restaurants

Marco Green
November 14, 2017

Former Union Finance Minister and BJP veteran Yashwant Sinha on Tuesday termed demonetisation and the Goods and Services Tax (GST) as "failures" and said the country can demand Finance Minister Arun Jaitley's resignation for the two moves that has led to a "slowed down economy". "The present government received some problems from the previous government which badly needed to be addressed. Those were the non performing assets (NPA) of the banking sector and the stalled projects of over Rs 2-25 lakh crore in the country", he said.

In September this year, in a newspaper article headlined, "I need to speak up now", Yashwant had criticised Jaitley over what he called the "mess the finance minister has made of the economy" and flayed demonetization and the way the GST had been rolled out. The NPAs of around Rs 8 lakh crore still remain to be addressed. Due to this the growth rate has fallen.

"The method of calculation of GDP is that it calculates the growth of organised sector and imagines that unorganised sector has made a similar growth". "He can not take credit for imposing on the country a deeply flawed tax system, and people of this country are well within their right to demand that he should lose his job", the veteran leader said.

Sinha said one major flaw of the GST was that 40% of the revenue stream was out of GST. "If we bring these under GST, people of India will get relief", he said. "Bringing products like petrol under GST will help lower the price". "When the new government took over in May, the petroleum products were at $110/barrel". We captured the benefit through taxation.

Mr Sinha was invited to poll-bound Gujarat by the activists associated with "Lokshahi Bachao Andolan" (Save Democracy Movement) to share his views about the current state of economy and impact of demonetisation and GST.

Chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur, wigs, cookers, stoves, after-shave, deodorant, detergent and washing power, razors and blades, cutlery, storage water heater, batteries, goggles, wrist watches and mattress are among the products on which tax rate has been cut from 28 per cent to 18 per cent. He, on his part, denied it.

Sinha, a member of the BJP s "margdarshak mandal" that was set up in 2014 to guide the party, has also said a revival by the time of the next Lok Sabha elections due in 2019 was "highly unlikely" and a "hard landing" appeared inevitable.

Other reports by Click Lancashire

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