‘One Nation, One Tax had become One Nation, 9 Taxes’: Congress’s Priyank Kharge on GST reforms

BENGALURU: Congress minister Priyank Kharge on Thursday criticised the Centre’s recent GST reforms and said that the ‘One Nation, One Tax’ had turned into ‘One Nation, 9 Taxes’. Kharge also claimed that the Congress party had long pushed for a simpler GST system with lower rates to ease the burden on farmers, small businesses and the middle class.

In a post on X, Priyank Kharge wrote, “A bit of common sense seems to have dawned upon the Modi Sarkar on the Gabbar Singh Tax. For almost a decade, the Indian National Congress has been demanding simplification of GST. ‘One Nation, One Tax’ had become ‘One Nation, 9 Taxes’ — 0%, 5%, 12%, 18%, 28%, and special rates of 0.25%, 1.5%, 3% and 6%.”

A bit of common sense seems to have dawned upon the Modi Sarkar on the #GabbarSinghTax.

For almost a decade, the Indian National Congress has been demanding simplification of GST. “One Nation, One Tax” had become “One Nation, 9 Taxes” — 0%, 5%, 12%, 18%, 28%, and special rates…

— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) September 4, 2025

“LoP@RahulGandhiand Sri.@kharge had been consistently batting for 18% cap or lower on GST Rates. @INCIndiain its 2019 and 2024 Manifestos had demanded a GST 2.0 with simplified and rational tax regime. We had also demanded to simplify the complicated compliances which had severely hit the MSMEs and small businesses. For the first time, Farmers were taxed under the BJP, with GST rates on at least 36 goods/items in the farm sector ranging from 12% to 28%. Essential commodities like packaged milk, wheat flour, curd, books, stationery etc were brought in under the GST”, the post reads.

Priyank Kharge said most of the GST burden falls on the poor and middle class while billionaires contribute very little. He also questioned how the Centre plans to compensate states like Karnataka after finally simplifying the tax system.

“2/3rd of the total GST i.e. 64% comes from the pockets of the poor and the middle class, but only 3% GST is collected from billionaires, while the rate of Corporate Tax has been reduced from 30% to 22%. Now that, the Govt has finally adhered to our demands of RATIONALISING & SIMPLIFYING the GST, they are yet to figure out how they will compensate the losses to states like Karnataka”, the post further reads.

On Wednesday late evening, Finance Minister Nirmala Sitharaman announced a sweeping reduction in GST rates on a wide range of essential items, automobiles, agriculture inputs, and electronic appliances. The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.

On the essential items front, items of daily household use will now cost less. Products such as hair oil, shampoo, toothpaste, toilet soap bars, toothbrushes, and shaving cream, which earlier attracted 18 per cent GST, will now fall under the 5 per cent bracket. Sitharaman announced a complete removal of GST on individual health and life insurance.

Farmers and the agriculture sector stand to gain significantly from these reforms as tractor tyres and parts, earlier under 18 per cent GST, will now be taxed at just 5 per cent, while tractors themselves will also see their rate reduced from 12 per cent to 5 per cent. (ANI)