"Modiji's Masterstroke": Opposition's Barb On GST Rate Hike

The Opposition on Monday attacked the centre over imposing Goods and Services Tax (GST) on packaged food items such as milk and curd, saying it was Prime Minister Narendra Modi's "masterstroke" of making India miserable.

BJP Member of Parliament (MP) Varun Gandhi also criticised the move, saying this will hurt people already struggling with "record-breaking unemployment".

The BJP, however, accused opposition parties of doing politics over the issue, saying states not ruled by the BJP were also part of the decision taken by the GST council.

A five per cent Goods and Services Tax (GST) has kicked in on pre-packaged and labelled food items such as cereals, pulses and flour weighing less than 25 kg. For a commodity measured in litres like curd and lassi, the limit is 25 litres.

Rahul Gandhi hit out at the ruling BJP and shared a graph on Twitter showing how commodities like curd, paneer, rice, wheat, barley, jaggery and honey are being taxed now. There was no tax on these items of mass consumption earlier.

"High taxes, No jobs. BJP's masterclass on how to destroy what was once one of the world's fastest growing economies," Rahul Gandhi said on Twitter.

BJP spokesperson Zafar Islam said opposition leaders like Rahul Gandhi were deliberately misleading people by blaming the central government for the five per cent Goods and Services Tax rate which kicked in from Monday on pre-packed and labelled food items such as milk, curd, cereals, pulses and flour weighing less than 25 kg.

Congress general secretary Priyanka Gandhi Vadra took a swipe at Prime Minister Modi, saying that arrangements were being made for some to earn indiscriminately, but the poor and middle class were being maligned with the talk of "Revadi culture".

"Earlier, petrol-diesel, cooking gas were made expensive. From today, flour, cereals and curd have also became expensive. To benefit the trillionaire friends of Modi ji, electricity will be made expensive in the coming time," the Congress general secretary said in a tweet in Hindi.

"For some people, arrangements are being made to earn indiscriminately, but the poor and middle class are being maligned by talk of 'Revadi culture'," Priyanka Gandhi said.

In a tweet, Congress said, "First, make commodities and services expensive. Then, make the mode of transactions costlier. Modiji's masterstroke of making India miserable." "Has the govt forgotten the difference between necessity and luxury, or is it just blatantly ignorant and insensitive?" the party said.

Communist Party of India-Marxist's (CPI-M) Sitaram Yechury asked the centre to "stop this relentless criminal assault on peoples' livelihoods".

"Modi govt must tax the super rich - its cronies - to raise revenues & end this imposition of burdens on the people," he said in a tweet.

Varun Gandhi said, "This decision taken amid record-breaking unemployment will put more financial burden on the middle class families, especially struggling youngsters living in rented houses. We are hurting them at a time when they needed relief," he said.

Delhi Chief Minister Arvind Kejriwal demanded the Centre to withdraw the tax citing "steep price rise" in the country.

"The entire country is facing a steep price rise and the Centre has increased the cost of food items by imposing GST on them. I demand the Centre to withdraw it," Arvind Kejriwal told reporters.

Delhi is the only state in the country that is offering some relief to people from price rise by providing them health, education, water, electricity, travel and other basic facilities free of cost, he said.

Meanwhile, traders in the national capital also opposed the GST Council's decision to tax pre-packed and labelled food items, and termed it an "anti-people move".

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)