Mangaluru : The Siddaramaiah-led Congress Government is clearly rattled by the success of Prime Minister Narendra Modi’s people-first GST rationalisation. Across India, citizens, traders and middle-class families are seeing real relief. Goods previously taxed at 12 or 18 percent are now at 5 percent; products under 28 percent tax have been brought down to 18 percent. Families are saving thousands of rupees annually and small businesses are operating with less burden.
Even Karnataka’s own ministers and officials supported the rate rationalisation in the GST Council. There was no opposition or objection. The decision was taken unanimously, with Karnataka represented. Even the state’s Revenue Minister has admitted that Karnataka’s strong tax buoyancy will more than offset any temporary dip.
For the Chief Minister to now attack the same reform that his government endorsed is not fiscal concern. It is political insecurity.
The claim of a ₹15,000 crore loss has no basis. There is no official paper supporting this. Every rupee of GST collected has been shared with the states according to GST Council decisions and Karnataka has received its full share.
This government has overseen a shift from revenue-surplus to revenue-deficit in Karnataka. . Even within the party it is acknowledged that the state’s finances are under strain. Just today, the state’s own economic advisor has exposed a ₹400 crore annual loss caused by the sand-mafia and alleged nexus between officials and smuggling operations.
While the Modi Government is reducing taxes, boosting growth and strengthening the middle class, the Congress Government in Karnataka is raising costs, mis-managing the treasury and creating excuses. The people of Karnataka can clearly see who is delivering relief and who is playing politics.
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