Chidambaram reacts to govt’s barbs on GST; heres what he said

Chidambaram reacts to govt’s barbs on GST; heres what he said

Former Union Finance Minister P. Chidambaram questioned on Thursday why government’s Chief Economic Advisor too held similar views as that of Congress party in capping GST at 18 percent.

Chidambaram was responding to Prime Minister Narendra Modi’s criticism of the Congress on the issue.

“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?” Mr. Chidambaram said in a series of tweets.

Mr. Modi, who addressed four back-to-back election rallies in Gujarat on Wednesday, targeted Congress vice-president Rahul Gandhi for his remarks on the GST.

In a rebuttal to Mr. Gandhi’s repeated criticism of the GST, a key economic reform undertaken by the NDA government, Mr. 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%?”

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