Criticism from Owaisi: Centre's assertions on GST reforms are just talk, he claims, highlighting the risk of revenue decline for states.

Reduction in GST Rates Sparks Debate Among Political Leaders

In a significant development, the Goods and Services Tax (GST) rates in India have been reduced, with the 12% and 18% slabs being reduced to 5%. This change was announced recently, and it has sparked a lively debate among political leaders.

P Chidambaram, the former Union Finance Minister and a senior Congress leader, has welcomed this move, praising the government for "realizing" its mistake after eight years of GST's introduction on July 1, 2017. Chidambaram had been a vocal critic of the GST structure, often arguing that it was incorrect and needed to be corrected. He made these comments while speaking to reporters in Madurai.

Chidambaram noted that the same middle class and poor people who bore the burden of paying 12% and 18% are the ones who will benefit from the reforms. He also criticized Prime Minister Narendra Modi and his ministers for overlooking the Congress party's pleas about GST's shortcomings.

However, not everyone is celebrating the GST rate reduction. Asaduddin Owaisi, the AIMIM chief and Hyderabad MP, has expressed concern that the changes in GST could have a very bad impact on the revenue and finances of the states. He warned that state governments could collectively face a revenue shortfall of Rs 8,000-10,000 crore each as a result of the changes in GST.

Owaisi also criticized the Center's claim that the latest reforms in Goods and Services Tax (GST) would boost consumption. He stated that past rhetoric and dialogue about GST have not helped the common man in the past decade.

It's important to note that the initial GST structure featured multiple slabs: 0%, 5%, 12%, 18%, and 28%. The Congress party, along with several economists, including former Chief Economic Advisor Arvind Subramanian, had raised concerns about the tax structure when it was first implemented.

Chidambaram, in his articles and speeches, often highlighted that the middle class and poor people were "squeezed dry" by high tax rates. He thanked the NDA government for realizing their mistakes regarding GST.

However, specific government members who ignored the Congress party's concerns about the short-term errors during the GST implementation over a long period are not detailed in the available search results.

This reduction in GST rates is a significant step towards addressing the long-standing concerns about the tax structure. Whether it will lead to the expected benefits for the common man and the states remains to be seen.

Criticism from Owaisi: Centre's assertions on GST reforms are just talk, he claims, highlighting the risk of revenue decline for states.