Former finance minister P Chidambaram responded to Prime Minister Narendra Modi on Thursday for criticising the Congress after it demanded an 18% cap on GST rates, saying whether the government’s Chief Economic Adviser (CEA) was “stupid” for having a similar view.
“If it is Grand Stupid Thought to argue for a cap of the tax rate at 18%, then CEA Dr Arvind Subramanian and many other economists are stupid. Is that what PM is saying?” Chidambaram said in a series of tweets.
Modi, who addressed four back-to-back election rallies in Gujarat on Wednesday, targeted Congress vice-president Rahul Gandhi over his remarks on the Goods and Services Tax (GST).
In a rebuttal to Gandhi’s repeated criticism of the GST, a key economic reform undertaken by the NDA government, Modi said a “recently emerged economist” was propagating a “grand stupid thought” by suggesting a uniform GST rate of 18%.
Chidambaram responded to the criticism saying: “Has PM read the CEA’s report on Revenue Neutral Rate? Did not CEA recommend an RNR of 15-15.5%? Why can’t the normal GST rate be 15% and RNR plus rate on luxury goods be 18%?” he asked.
The senior Congress leader said tax and spend is the “credo” of the BJP government. “Example: when crude oil prices fell by 50%, prices of petrol and diesel remained the same.”
{{/usCountry}}The senior Congress leader said tax and spend is the “credo” of the BJP government. “Example: when crude oil prices fell by 50%, prices of petrol and diesel remained the same.”
{{/usCountry}}Chidambaram said 5,000MW of stressed power assets, no tender for power purchase, and no demand for power. Yet, the government claims that “all is well with economy!”