Akhilesh Yadav, the president of the Samajwadi Party (SP), gave the new Goods and Services Tax (GST) modifications a bad evaluation on Sunday. He added that lowering the interest rate won’t stop inflation and that US tariffs are “ruining” the “Make in India” program. Just a few days after the 56th GST Council meeting, where they decided to merge the 12% and 28% tax rates into two slabs of 5% and 18%, he spoke out.
Yadav told reporters in Etawah that the government has been using GST for ten years and that the most recent revisions were an admission of its mistakes. “Reducing slabs will not lower inflation,” he said, because people are still paying high prices.
Yadav also questioned the government’s foreign and economic policies, using US tariffs as an example. “America has slapped tariffs on goods. This is suspending all exports, which is bad for our economy. He added that “Make in India” is being hurt and that the “Swadeshi” motto is merely “on the tongue, not in the heart.” He was talking about the recent US tariffs, which put a 50% levy on select Indian goods. India kept buying Russian crude oil, therefore these taxes were placed in place.
What the government and experts said
The BJP hasn’t specifically answered Yadav’s specific objections of the GST reforms yet, but Union Ministers and experts have welcomed the GST Council’s choices. The government’s press release regarding the adjustments claimed that the goal of making GST rates more uniform on fundamental commodities like food, medical equipment, and consumer goods is to help the average person and get people to buy more.
Many economists have also said that the policies are a good idea. Experts from prominent banks say that the rationalization will change the rules for businesses like vehicles and real estate. They believe that the lower prices on cars, motorcycles, and building materials will help individuals save money and the economy grow.
On the other hand, Indian exporters have been working hard to find new markets since the US put tariffs on their goods. The Economic Times has published a research that shows a change in how diamonds, jewelry, and textiles are sent to countries in Europe, Asia, and Africa to decrease the consequences of the tariffs.