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Dakshina Kannada Member of Parliament Captain Brijesh Chowta on October 21, said the Siddaramaiah-led Congress government in Karnataka has resorted to the spread of misinformation being unable to digest the relief brought by the GST reforms. In a statement here, Capt. Chowta said the Congress government is clearly rattled by the success of Prime Minister Narendra Modi’s people-first GST rationalisation. Across India, citizens, traders and middle-class families have witnessed a true relief. Goods previously taxed at 12% or 18% are now taxed at 5%; products under 28% slab are brought under 18% slab. Families are saving thousands of rupees annually and small businesses are operating with less burden. Political insecurity The MP said even Karnataka’s own ministers and officials supported the rate rationalisation in the GST Council. There was no opposition or objection. The decision was taken unanimously, with Karnataka being represented in the Council. Even the State’s Revenue Minister has admitted that Karnataka’s strong tax buoyancy will more than offset any temporary dip. For the Chief Minister to now attack the same reform that his government endorsed is not fiscal concern. It is political insecurity. Capt. Chowta said the claim of a ₹15,000 crore loss to Karnataka has no basis. There is no official paper supporting this. Every rupee of GST collected has been shared with the states according to GST Council decisions and Karnataka has received its full share. The MP alleged that the Congress government is responsible for Karnataka witnessing a shift from revenue-surplus to revenue-deficit state. Even within the Party it is acknowledged that the State’s finances are under strain. Just on October 21, the State’s own economic advisor has exposed a ₹400 crore annual loss caused by the sand-mafia, and the alleged nexus between officials and smuggling operations. While the Modi government is reducing taxes, boosting growth and strengthening the middle class, the Congress government in Karnataka is raising costs, mismanaging the treasury and creating excuses. The people of Karnataka can clearly see who is delivering relief and who is playing politics, Capt. Chowta said.
