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Battleground Gujarat: GST, new generation reforms come under scanner

Battleground Gujarat: GST, new generation reforms come under scanner

Ahmedabad, Dec 7 (UNI) In the run-up to the do-or-die battle for power in the western state of Gujarat, a
common theme running through the election campaign agenda has been the economic reforms vis-a-vis Goods and Services Tax, originally piloted during Dr Manmohan Singh regime.
However, keen to leverage the discontent among trading community - in a state also popularly known as
a traders' paradise, the Congress seemed to have changed sides with the now ruling BJP.
The Congress, which originally initiated economic reforms in 1991 under P V Narasimha Rao and moves like rollout of GST during UPA-I in 2004-05 – very often seem to have taken an anti-GST position – though Congress leaders would not call their political opposition to BJP's implementation of the GST as ‘anti-reform’.
The BJP - on the other hand - is claiming that the GST is a much-needed reform strategy and would yield dividends to the country's economy in the long run.
"The problems we see in GST implementation are teething problems of transitional phase. Our political detractors have blown these out of proportion," said BJP chief Amit Shah.
But known as ear-on-ground party, the saffron outfit ensured a slew of "changes" in GST rate cards aimed at assuaging Gujarati traders and consumers. But nevertheless the grievance remains.
In Jamnagar, in politically-sensitive Saurashtra-region, Suresh Tamey, President of Jamnagar Vyapar Mandal, told UNI: "I am supporting Congress candidate Ashok Lal in Jamnagar South but I ought to admit without GST, the BJP would have got a cakewalk in Gujarat".
Politically, thus the GST as a subject has remained hot in political discourse and debate. Several BJP leaders, including Amit Shah, has tried to take the battle into the rival camp.
"The GST troubles are one thing, what is more important is life. At one point of time during Congress rule, housewives used to confine themselves into prayer room every evening praying so that the trader husband returns home safe and sound. The business people had to make separate investment plans taking into consideration the bribe amount," Mr Shah told a TV programme few days back.
He also slammed Congress for its 'double standards' as no Congress leader or (state) Finance Minister in the GST Council has ever given any dissent note. "They are also part of the entire decision making process. If Finance Ministers of Congress-ruled state are not bothered about what Rahul Gandhi is feeling, it is his problems, not ours," he has said rather sarcastically.
The Congress has countered these charges. "Had Prime Minister Narendra Modi done a simple thing, had he made GST a 'simple tax' rather than Gabbar Singh Tax, the GDP would not have fallen," Congress spokesman Randeep Singh Surjewala told UNI here.
There would have been increase of Rs 4,000,00 crore.
"But Prime Minister and his government made the GST very complex and difficult to implement. They made the architecture defective," he said.
The saffron poll strategists are however working overtime to pass on the message to the electorate that the
developmental agenda of the BJP regimes in the state and now the Modi government's much talked about slogan ‘Sabka Saath, Sabka Vikas’ has brought in higher standard of living through faster economic growth and enhanced social justice through measures like Jan Dhan and a corruption-free administration.
The Congress party has been quite consistent about attacking the Modi-led dispensation for what they say roll-out of 'half-baked' GST.
Congress vice-president Rahul Gandhi made optimum use Twitter handle to attack the new tax regime terming it as 'Gabbar Singh Tax.'
Into the high-decibel election campaign, Prime Minister Narendra Modi also hit back at Mr Gandhi dubbing his opposition to GST as 'Grand Stupid Thought'.
However, the citizens have so far given mixed reactions to the GST measures with the refrain being while none is opposed to a reform strategy, the manner of its implementation remains to be questioned.
BJP sources said at places the criticism is more directed against note ban than GST per se as cash dealings have been always more in Gujarat.
In retrospect, on October 7 itself the GST Council -- that also comprises six Finance Ministers from Congress-ruled states - trimmed the tax rates on 27 items --- with some items especially linked to the traders and people of Gujarat.
"It was a serious attempt. A minor correction and a bit combination of appeasing the local sentiments. There were relaxation in polyster, artificial yarn and also food items like khakhra, a popular Gujarati snack and a series of salty items. But all that may not have pleased all yet," said Rajkot-based educationist Parthbhai Bhatt.
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