Kharge Slams GST Reforms, Says Farmers Taxed for the First Time in India’s History
New Delhi: Congress president Mallikarjun Kharge on Thursday launched a scathing attack on the Narendra Modi-led government, alleging that for the first time in the country’s history, farmers are being taxed under the new GST regime.
Kharge criticised the recently announced GST reforms, saying the move to impose GST on at least 36 items related to agriculture marks an unprecedented burden on India’s farming community. He said the Congress had long dubbed GST as the “Gabbar Singh Tax” for its harsh impact on ordinary citizens.
“This is the first time since Independence that taxes are being levied on farmers. The farming community, already facing a severe economic crisis, is now being further burdened by GST,” Kharge wrote on X (formerly Twitter).
📌 Congress Calls for GST 2.0
Kharge reiterated that the Congress party, in its 2019 and 2024 manifestos, had demanded a simplified and rationalised GST 2.0, especially to ease compliance for MSMEs and small businesses, which he said have been “badly hit” by the existing structure.
Recalling the history of the tax reform, he pointed out that it was the UPA government that first introduced the concept of GST in 2005, with former Finance Minister Pranab Mukherjee tabling the bill in 2011.
“Back then, the BJP had opposed GST, and Narendra Modi—then Gujarat’s Chief Minister—was among the critics. Today, the same BJP government is celebrating record GST collections as if more taxes are a badge of honour,” he wrote.
📉 Corporate Tax Cut vs Tax Burden on Common Man
Kharge contrasted the Centre’s tax policies, highlighting that the corporate tax rate was reduced from 30% to 22%, while income tax collection rose by 240% and GST collection surged by 177% in the last five years.
He alleged that this reflects a clear imbalance in the tax system.
“About 64% of GST comes from the poor and middle class, while only 3% is contributed by the billionaire class,” he noted.
The Congress leader also took aim at GST on essential items, listing milk, curd, flour, grains, children’s school supplies, oxygen, insurance, and hospital expenses among the goods and services now taxed.
🌾 “GST on Farmers Is Unjust”
Focusing on the agricultural sector, Kharge said that taxing farmers—who form the backbone of India’s economy—goes against the spirit of a welfare state.
“This decision is anti-farmer and comes at a time when the rural economy is already under stress,” he said.
📉 Concerns Over State Revenues
While acknowledging the government’s recent step to rationalise GST rates, Kharge warned of its negative impact on state revenues.
He urged the Centre to compensate states for revenue loss for at least five years, using 2024–25 as the base year.
“The delay of eight years in GST rationalisation has already hurt state finances. Without adequate compensation, states will face serious fiscal pressure,” he added.
Background:
The GST Council recently announced a shift to a two-tier GST system with 5% and 18% slabs, replacing the earlier four-slab structure. A special 40% slab has been introduced for sin goods and luxury items.
