Roll back GST hikes: CPI(M) to Centre

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The CPI(M) has hit out at the government over the hike in the Goods and Services Tax (GST) rates and demanded its rollback.

In a statement issued on July 20, the Communist Party of India (Marxist) raised the issue of the latest GST hikes on all essential commodities such as pre-packaged rice, wheat and milk, and said this has brought "unprecedented burdens" on the people.

"Independent India abandoned the policy of the colonial British government’s tax on food items. In these last 75 years, food items like rice, wheat, pulses etc., daily essentials like curd, paneer, meat, fish, jaggery were never taxed. This is the Modi government’s 'gift' to the Indian people in this year of 'Azadi ka Amrit Mahotsav'. The range of items on which GST has been increased also includes crematorium charges, hospital rooms, writing ink etc. Even to withdraw one’s own savings from their bank accounts, people have to pay 18 per cent GST on bank cheques," the Left party said.

It said the move is a "cruel assault on people’s livelihood" and came when there is a "run-away price rise with the Consumer Price Index”, soaring unemployment, a tumbling rupee, unprecedented trade deficit and a stumbling GDP growth. "These hikes will further ruin people’s livelihood. To raise revenue, the Modi government must tax the super-rich and not impose more burdens on the people…. Instead of taxing this super rich, the Modi government is giving them further tax concessions and loan waivers. Many of the luxury goods that should have been taxed heavily are having a modest GST. Gold purchases are taxed at 3 per cent, diamonds at 1.5 per cent, while food items have GST of 5 per cent or more. The claim of the Modi government that no opposition was raised against these hikes is blatantly untrue," the statement said.

It said Kerala Chief Minister Pinarayi Vijayan has written to Prime Minister Narendra Modi, conveying the state government’s strong objection and reminding him that the state finance minister had conveyed reservations as early as in November 2021 against these proposals when they were first mooted.

"The politburo of the CPI(M) calls upon all party units to organise broad-based protest actions against this cruel attack on people’s lives," the statement said.