GST should not be inflationary: Congress

Subscribe to Oneindia News

New Delhi, Aug 8: Reiterating its demand that the GST should be capped at 18 percent so that it doesn't become "inflationary", the Congress on Monday said that the NDA government should have done some "homework" before getting it passed.

The party also suggested that the report of Chief Economic Advisor Arvind Subramanian on the matter should be kept in mind while implementing the Goods and Services Tax regime.

GST should not be inflationary: Congress

"It should be capped at 18 percent, otherwise it will become inflationary," Congress's Lok Sabha member Veerappa Moily told media here.

Read more: GST Bill very important step to get rid of tax terrorism: PM Modi in LS

He said any reform is welcome but the government should keep in mind that similar laws across the world have failed as they turned inflationary, and hence the tax rate should be fixed keeping in mind the interests of common man.

The Congress leader also reiterated his party's another demand that subsequent legislation for its implementation like CGST and IGST bills should be brought in the house as financial and not money bills.

"Entire nation should be taken into confidence before passing such bills and that's why bills like these cannot be brought as money bills," he said, adding that Congress was all for the bill.

"We are for GST," he said, adding that it should have become a reality a long ago.

The amended GST bill as passed in the Rajya Sabha last week, is being discussed by the Lok Sabha on Monday, and it is likely to be passed smoothly as the government has absolute majority in the lower house.

IANS

Please Wait while comments are loading...