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Ashwini Vaishnaw Defends GST Reforms, Accuses UPA of Creating “Tax Terror”

He emphasised that refrigerators and televisions should not be considered luxury items, noting that reduced taxes now make them accessible for ordinary families.

TIS Desk | New Delhi |

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Union Minister Ashwini Vaishnaw on Monday strongly defended the Goods and Services Tax (GST) reforms, hitting out at the Congress and Opposition parties for their criticism. He argued that before 2014, during the United Progressive Alliance (UPA) regime, industries and MSMEs were subjected to “tax terror” due to a complex web of levies.

Addressing a press conference in the national capital, Vaishnaw said, “The GST reforms have been implemented today. A while ago, I was in a market in RK Puram, and people buying goods there also said that they were happy. Under the UPA, there was tax terror. Multiple taxes were unified into GST. Once it was widely accepted, next-generation reforms were introduced, and today, the country is in a strong position. I thank Prime Minister Modi and the Finance Minister for these reforms.”

Highlighting reduced tax rates on essential items, the minister said cement, sanitary pads, footwear, refrigerators, and televisions were earlier taxed heavily but have become more affordable post-GST.

  • Cement: 30% under UPA → 18% now
  • Sanitary pads: 13% under UPA → 0% now
  • Paint: 30% under UPA → 18% now
  • Footwear: 18% under UPA → 5% now
  • Refrigerator & TV: 30% under UPA → 18% now
  • Detergent, shampoo, coffee: 30% under UPA → 5% now
  • Fertiliser & urea: 12% under UPA → 5% now

He emphasised that refrigerators and televisions should not be considered luxury items, noting that reduced taxes now make them accessible for ordinary families.

Meanwhile, the Congress continued its criticism of GST reforms. Senior leader Jairam Ramesh pointed out that Prime Minister Narendra Modi himself had opposed GST during his tenure as Gujarat Chief Minister, only to later introduce it in 2017. He also argued that the latest reforms fail to ease procedural hurdles faced by MSMEs and ignore demands from states for a five-year compensation package.

Congress MP Pramod Tiwari went further, accusing the government of “looting” poor and middle-class citizens, questioning why GST rates had been raised in the past eight years and reiterating the Opposition’s demand for a single slab under the “one nation, one tax” principle.

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