While endorsing Congress President Rahul Gandhi’s idea that Goods and Services Tax (GST) should be single rate, former Finance Minister P. Chidambaram schooled his successor Arun Jaitley by explaining him the idea which the latter termed as ‘stupid.’
Jaitley, yesterday, had termed Rahul Gandhi’s view as a ‘stupid idea’.
“A single slab GST argued by the Congress President is indeed a stupid Idea. Luxury and sin items can’t be taxed at the same rate as the common man’s item,” Jaitley had tweeted.
A single slab GST argued by the Congress President is indeed a stupid Idea. Luxury and sin items can’t be taxed at the same rate as the common man’s item.
— Arun Jaitley (@arunjaitley) December 20, 2018
The UPA had left behind a legacy of 31% indirect Tax on most items. The GST has already reduced 334 items to 12% and 18% slab. Wasn’t the 31% Tax an oppressive idea- a stupid one at that.
— Arun Jaitley (@arunjaitley) December 20, 2018
Responding to the same, Chidambaram wrote that the meaning of having a single rate in GST means that the standard rate of GST should be a single rate and that the BJP’s idea of having 8 rates when GST was first implemented was actually ‘stupid’.
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“When the Congress President said — as I have said — GST should be a single rate, it means that the standard rate of GST should be a single rate. That’s absolutely correct. As Dr Arvind Subramanian’s RNR report pointed out, when there is a standard rate there will also be a standard-minus rate and a standard-plus rate. That’s elementary, not stupid. The stupid idea was the BJP’s idea of having 8 rates when GST was first implemented in July 2017!” Chidambaram wrote in a series of tweets.
When the Congress President said — as I have said — GST should be a single rate, it means that the standard rate of GST should be a single rate. That's absolutely correct.
— P. Chidambaram (@PChidambaram_IN) December 21, 2018
As Dr Arvind Subramanian's RNR report pointed out, when there is a standard rate there will also be a standard-minus rate and a standard-plus rate. That's elementary, not stupid.
— P. Chidambaram (@PChidambaram_IN) December 21, 2018
The stupid idea was the BJP's idea of having 8 rates when GST was first implemented in July 2017!
— P. Chidambaram (@PChidambaram_IN) December 21, 2018
A twitter war erupted between the two parties following Prime Minister Narendra Modi’s announcement of bringing 99 per cent items under the 18 per cent GST slab.
Following his announcement, the Congress chief took a dig at PM Modi and said that his party had jolted him “out of his slumber.”
“The Congress Party has finally jolted Narendra Ji from his deep slumber on Gabbar Singh Tax. Though still drowsy, he now wants to implement what he had earlier called the Congress Party’s, “Grand Stupid Thought”. Better late than never Narendra Ji!” Gandhi had tweeted.
Chidambaram also criticised the government saying that “belated wisdom” had dawned upon the Centre.
“Government says 99% of goods will be at 18 per cent GST. Belated wisdom. We should have started with 18 per cent as the standard rate. Having scrambled the egg needlessly when GST was introduced, Government is trying to unscramble it! Typical of NDA. BJP/NDA governance mantra is ‘Leap before you look’. Which is the reason for the damage caused by GST to businesses, especially MSMEs,” the former Finance Minister had tweeted.