Karnataka IT Minister Priyank Kharge Criticizes Centre Over Corporate Tax Cuts, Calls for GST Reforms
Bengaluru:
Karnataka’s IT and Rural Development Minister Priyank Kharge has sharply criticized the Narendra Modi-led Central government for slashing corporate tax rates, arguing that the move benefits the rich while the poor and middle class continue to bear the brunt of taxation through GST.
In a post on social media platform ‘X’, Kharge noted that 64% of GST revenue is collected from poor and middle-class consumers, whereas only 3% comes from billionaires. He also pointed out that corporate tax rates have been reduced from 30% to 22%, which he sees as a sign of policy imbalance.
“A bit of common sense seems to have dawned upon the Modi Sarkar on the #GabbarSinghTax,” Kharge quipped, using the opposition’s long-standing nickname for GST.
Criticism on GST Structure
While acknowledging the GST reforms introduced by the Centre, Kharge argued that the Indian National Congress (INC) had been demanding GST simplification for nearly a decade. He accused the BJP of turning the original idea of “One Nation, One Tax” into “One Nation, Nine Taxes”, highlighting multiple GST slabs — 0%, 5%, 12%, 18%, 28%, and special rates of 0.25%, 1.5%, 3%, and 6%.
He further stated that senior INC leaders like Rahul Gandhi and Mallikarjun Kharge had consistently called for an 18% GST cap or lower, and that the party’s 2019 and 2024 manifestos had proposed a “GST 2.0” with a simplified tax regime.
Kharge also criticized the complex compliance procedures under GST, saying they had severely impacted MSMEs and small businesses across the country.
Taxation on Farmers and Essentials
Taking aim at the BJP government’s taxation policies, Kharge said,
“For the first time, farmers were taxed under the BJP,”
referring to GST rates between 12% and 28% on at least 36 agricultural-related items.
He also expressed concern over essential commodities like packaged milk, wheat flour, curd, books, and stationery being taxed under GST, which he claimed further burdens common citizens.
Concern Over Compensation to States
Kharge questioned how the Centre plans to compensate revenue losses for states like Karnataka due to GST rationalisation.
“Now that the Government has finally adhered to our demands of rationalising and simplifying the GST, they are yet to figure out how they will compensate the losses to states like Karnataka,” he said.
“Mankibaat Should Become Kaamkibath”
Speaking to reporters at Vidhana Soudha, Kharge said there’s still room for improvement in GST implementation and economic policy.
“There should be complete relief for the common man. Stimulate the economy to create more jobs. ‘Mankibaat’ (PM’s speech) should turn into ‘Kaamkibath’ (talk about action),” he suggested.
