– Pervez Bari
Bhopal: TS Singhdeo, former Deputy Chief Minister of Chhattisgarh and senior Congress leader, has criticised India’s GST system, claiming it disproportionately benefits the wealthy while burdening middle- and lower-income groups. Singhdeo alleged that GST, implemented under the slogan “One Nation, One Tax,” is a system designed “of the rich, by the rich, and for the rich,” exacerbating economic inequality by enriching the wealthy at the expense of ordinary citizens.
Addressing a press conference at the Madhya Pradesh Congress Committee headquarters here, Singhdeo targeted the Central NDA government led by Prime Minister Narendra Modi, demanding an overhaul of the GST system to alleviate the financial burden on common citizens and curb tax evasion.
“The richest 10% contribute only 3% to 4% of GST revenue, while the bottom 50% bear 64% of the burden. This leaves the lower-income population with less disposable income for their families and homes, as their money is effectively being taken by the government in the form of GST,” Singhdeo stated.
He criticised the system’s inequities, noting that GST disproportionately affects essential items consumed by lower-income groups. “More GST is collected from middle- and lower-income groups, while corporate houses enjoy significant tax exemptions. For instance, GST on basic food items should be abolished, yet it is imposed on items like pencils, which is unjust. Citizens who take health insurance for security are paying 18% GST. This is entirely impractical.”
Singhdeo emphasised the need for simplified and equitable tax structures. “Businessmen and traders are struggling under the complexity of the current GST, which includes rates as high as 9%. There should be a maximum of two or three GST slab rates to ease compliance and ensure fairness.”
He highlighted the inconsistency in GST rates, using popcorn as an example. “Popcorn is taxed at three different rates – 5%, 12%, and 18% – which is absurd. Meanwhile, corporate houses receive an annual exemption of ₹2 lakh crore in corporate taxes, further tilting the system in their favour,” Singhdeo alleged.
Singhdeo called for the elimination of GST on essential commodities and a more balanced approach to tax policies to ensure the burden is fairly distributed across income groups.
