India

AAP Demands GST Slabs to be fixed at Max 10%

AAP Demands GST Slabs to be fixed at Max 10%
Written by Shruti Bhatt

As the date of July 1 draws closer, the state governments across the nation get ready to apply the bill passed in parliament earlier this year regarding GST in their respective states. For the same, Delhi legislative assembly has passed the historic GST bill with the resolution that the tax slabs decided at 18% and 28% under GST be reduced to maximum 10% and not more than that. The ruling party in the national capital Aam Aadmi Party and its high command comprising of former RTI activist and current Chief Minister Arvind Kejriwal and Deputy Chief Minister Manish Sisodia who both have voiced their concerns about the compliance by the common man as well as the inflation that the new tax system is expected to create.

The party has made it quite clear that it supports the new taxing system of ‘one nation, one tax’ in principle and welcomes the change that it will bring to the nation and its functioning. However the party has time and again expressed its doubts about the functioning of the current bill. The party believes that the high tax slabs will not encourage the public to comply, which will not lead to the results that a common tax system is expected to bring. The party has its own performance in Delhi to show for the example of low rates, and higher compliance as the Chief Minister stated that they brought down the tax rates in Delhi and reaped its benefits given the public’s lesser inclination towards non compliance.

The resolution that was passed in the Delhi state assembly reportedly states that the House was in support of GST in principle, however it opposed the way in which tax rates of 18 and 28% were decided in GST Council meetings. The House proposed that GST rates on any goods or service should not be more than 10%, out of which 5% should belong to states and 5% to the Centre. Manish Sisodia also maintained that the party will protest in and out of the Council meetings if their demands are not met.

The party has established a help line system and has vowed to help the public of the capital understand the nuances of the taxing system better going as far as doing a Facebook live to reach out to people more for the historical GST bill. The party has also asked to reconsider the taxes on several essentials.

The party thus has stood its ground on the bill for past some time now and it remains to be seen what changes it might be able to bring to the original bill.

About the author

Shruti Bhatt

Shruti Bhatt is an engineering graduate, consumed with her passions day in and day out. An avid moviemaniac, a foodie, a bibliophile, and coffee-fashion-music enthusiast, Ms. Bhatt is on the way of becoming a raconteur - the word she is most fascinated with.