Delhi Chief Minister Arvind Kejriwal on Monday demanded that the Centre withdraw the Goods and Services Tax (GST) it has freshly imposed on pre-packed and labelled food items.
“It is very regrettable that on one hand, inflation in the country is at an all-time high and on the other, the Central Government has hiked the GST on basic commodities like pulses and rice. We demand that the Central Government revoke this hike,” said Kejriwal. The Centre imposed a five per cent GST on pre-packed and labelled food items such as meat (except frozen), fish, curd, paneer, honey, dried leguminous vegetables, makhana, wheat and other cereals, wheat or meslin flour, jaggery, puffed rice, all goods and organic manure and coir pith compost from Monday. “Delhi is the only State which is working tirelessly to give some relief to the citizens from inflation and people themselves agree to this. We provide excellent education to their children free of cost. They get excellent treatment, 24x7 electricity, and water for free. Women can travel for free in the Government buses. If you add all this, every family makes a saving of Rs 10-15 thousand every month,” said Kejriwal.
Meanwhile, traders in the national Capital have opposed the GST Council's decision and termed it an "anti-people move". Chamber of Trade and Industry chairman Brijesh Goyal said this is first time since Independence that dal, rice, flour, cereals, curd, and lassi that used to be tax-free, have been taxed.
"We are against this decision and it should be rolled back. This will prove to be detrimental for the common all. This is an anti-people move," said Delhi Grain Merchant Association president Naresh Kumar Gupta.
Wholesale and retail grain markets in the city had remained closed on Saturday as traders observed a bandh against the Government’s move. The CTI has also called a maha panchayat of traders on Wednesday in protest against this.
A five per cent GST rate on pre-packed and labelled food items such as cereals, pulses and flour weighing less than 25 kg kicked in on Monday. According to the Union finance ministry, "GST would apply on such specified goods where the pre-packaged commodity is supplied in packages containing a quantity of less than or equal to 25 kilograms.