Centre "Can Afford Small Loss": Shashi Tharoor For No Tax On Essentials

Congress MP Shashi Tharoor has written to Finance Minister Nirmala Sitharaman seeking to waive goods and services tax (GST) and other taxes on essential supplies.

"I urge that manufacturers should still be allowed input tax credit so that the purchase price is unaffected. Govt can afford this small loss in a good cause," Mr Tharoor said.

"For instance, during my recent procurement of 250 infrared thermometers for my constituency of Thiruvananthapuram, using the MPLAD funds that were previously under my disposal, a considerable sum of Rs 5.08 lakh was levied in taxes (comprising customs duty of Rs 1.64 lakh, IGST of 3.27 lakh and a social welfare cess of Rs 16,415," Mr Tharoor said.

He said that for buying 3,000 RT-PCR test kits for COVID-19 for his constituency, the consignment was charged with a 12 per cent GST rate.

My letter to the FinanceMinister urging waiving of GST &other taxes on essential supplies for the fight against #COVID19. I urge that manufacturers should still be allowed input tax credit so that the purchase price is unaffected. Govt can afford this small loss in a good cause. pic.twitter.com/wiacHDaDF8

— Shashi Tharoor (@ShashiTharoor) April 20, 2020

"It is also my understanding that the procurement of PPE kits, which are essential in offering a layer of protection to healthcare professionals and allied medical supports staff, will attract a GST of either 5 per cent or 12 per cent depending on the cost of individual components within these kits," he said.

"At a time when the nation is united in a common endeavour to tackle the COVID-19 pandemic, and many stakeholders are scrambling to procure these essential items from all quarters including overseas manufacturers, the current tax slabs that have been fixed offer a financial obstacle that could be done away with," Mr Tharoor said.

"Though Parliamentarians can unfortunately no longer procure critical equipment since the funds at their disposal have been appropriated by the central government, other civil society organisations and philanthropic bodies have been generously doing their bit to augment the availability of these items," he said.

The centre had scrapped the personal fund for Members of Parliament that can be deployed for projects in their constituencies. The government's move to consolidate the MP Local Area Development Scheme (MPLADS) for two years comes as it looks for ways to mobilise resources to carry on the fight against COVID-19.