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TN businessman’s GST remarks, apology to FM spark slugfest
The state unit of the BJP apologised for sharing the second video and sought to distance itself from the row even as the Opposition alleged that the incident showed the arrogance of the Centre.
Two videos –– one of prominent Tamil Nadu businessman seeking a simpler Goods and Services Tax (GST) regime in a meeting chaired by Union finance minister Nirmala Sitharaman, and another of him apologising to the minister and the Bharatiya Janata Party (BJP) senior leader and Coimbatore MLA Vanathi Srinivasan in a private meeting –– sparked a major political controversy on Friday.
The state unit of the BJP apologised for sharing the second video and sought to distance itself from the row even as the Opposition alleged that the incident showed the arrogance of the Union government and its insensitivity towards the concerns of small businesses.
“When the owner of a small business, like Annapoorna restaurant in Coimbatore, asks our public servants for a simplified GST regime, his request is met with arrogance and outright disrespect,” Congress leader Rahul Gandhi said on X.
The saga began on Wednesday at a public meeting in Coimbatore when D Srinivasan, one of the shareholders of a popular chain of vegetarian hotels called Annapoorna in the district, asked Sitharaman a question on the GST slabs.
“While there is no GST on bun, and 5% (GST) on cream, if you put cream and bun together, the GST rate becomes 18%,” Srinivasan said in Tamil, according to clips of the meeting. He also added that customers were telling him to give the bun and cream separately, and that even the computer was unable to compute the complex GST rates.
Experts have long argued that the multiple tax rate slabs –– India taxes goods at 5%, 12%, 18% and 28% –– and the frequent tinkering of rates blunt the advantage of having a nationwide uniform tax regime. The government says that decisions are taken by the apex indirect tax body, the GST Council, where every state has equal representation.
Srinivasan went on in the same vein, polite, but making his point with humour, which even the minister appeared to appreciate.
But the exchange sparked a controversy after another video was leaked on Thursday, where Srinivasan could be seen apologising for his comments in a private meeting with Sitharaman and Vanathi Srinivasan.
“I didn’t mean to say anything against any political party. I don’t belong to any political party,” he was seen saying with folded hands.
The video was posted on X by BJP’s Tamil Nadu IT wing
A person familiar with the matter said that Srinivasan was unaware that he was being recorded. “He was recorded without his knowledge and the video was released,” the individual said, requesting anonymity.
On Friday, controversy erupted over the second video.
The DMK and Congress alleged that the BJP forced the businessman to apologise.
“Our small business owners have already endured the blows of demonetisation, an inaccessible banking system, tax extortion and a disastrous GST. The last thing they deserve is further humiliation. But when the fragile egos of those in power are hurt, it seems humiliation is exactly what they’ll deliver. MSMEs have been asking for relief for years. If this arrogant government would listen to the people they would understand that a simplified GST with a single tax rate would solve the problems of lakhs of businesses,” Gandhi posted on X.
The Dravida Munnetra Kazhagam also sought an apology from the BJP. “The Union finance minister should seek a public apology for insulting Tamilians and for terrorising an honest businessman,” DMK spokesperson A Saravanan said.
The fact that the row broke out in Tamil Nadu, where the BJP is trying to gain a toehold, and especially in Coimbatore, where the party has some support among businessman and from where its state unit chief K Annamalai unsuccessfully fought the 2024 Lok Sabha polls, added another dimension to the debate.
In the afternoon, Annamalai apologised. “On behalf of @BJP4TamilNadu, I sincerely apologise for the actions of our functionaries who shared a private conversation between a respected business owner and our Hon. FM,” Annamalai said in a post on X.
“I spoke with Thiru Srinivasan Avl, the esteemed owner of the Annapoorna chain of restaurants, to express regret for this unintended breach of privacy. Annapoorna Srinivasan Anna is a pillar of Tamil Nadu’s business community, contributing significantly to the state’s and nation’s economic growth. I request everyone to lay the matter to rest with due respect,” he added.
