"Congress Even Taxed Children's Toffees": PM Modi Attacks Opposition On GST

Prime Minister Narendra Modi, speaking on the rationalization of Goods and Services Tax today, attacked the Opposition Congress, pointing out that they taxed anything and everything -- daily essentials, food and medicine. The rationalization has been criticised by the Congress, which called it eight years too late. It has also given questioned what brought on this sudden move, speculating about multiple issues including the coming assembly elections in Bihar and the 50 per cent tariff imposed by US President Donald Trump. 

PM Modi's response today was sharp.

"Before I came in 2014, whether it was kitchen utensils or agricultural things, or medicines, and even life insurance, the Congress government took different taxes on such various things," he said, enumerating the items of daily use that had steep tax. 

"Toothpaste, soap, hair oil - 27% tax on them. 18 to 28 per cent tax on food plates, cup plates, spoons. Tooth powder -- 17% tax...  The condition was that the Congress people used to take 21% tax on children's toffees," he said.   

The humble cycle, required by crores in the country carried a 17 per cent tax. "Sewing machine -- for lakhs and lakhs of mothers and sisters, it is a means of self-respect and self-employment.  16 per cent tax was imposed on this," he said.  

The Congress, he added, had made building houses difficult, imposing a 29 per cent tax on cement and made it "very difficult for the middle class to travel", with 14 per cent tax on hotel rooms. Air conditioners, television, fan-all such items carried a tax of 31 per cent.

"Before 2014, the farmer's farm was more expensive and the profit was very less. The reason was that the Congress government used to collect a lot of tax on the agricultural goods," he added. 

The rationalization of GST, announced yesterday by the GST Council, brought down the four existing tax slabs to two - 5 per cent and 18 per cent. Taxes on multiple items -- including food, medicines, essential items, farm goods, green energy, small cars and bikes - have been slashed. 

Crucial items including life and medical insurance, life-saving drugs and food items including dairy products and bread have been made tax free.

"I had promised the people of the country that this Diwali would bring a double bonanza... People will start benefiting from first day of Navratri. This time, Dhanteras will be more vibrant. This is the biggest reform of Independent India," PM Modi said.