Sat Dec 21 19:00:32 UTC 2024: ## GST Council Slaps Higher Taxes on Used Cars to Boost EV Sales; Opposition Criticizes Tax Volatility
**Jaisalmer, Rajasthan:** The 55th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, concluded in Jaisalmer, Rajasthan, resulting in several changes to the Goods and Services Tax (GST) structure. While the government touted reductions and exemptions on certain goods and services, and confirmed agricultural black paper remains outside the GST ambit, the decision to increase taxes on used cars to promote electric vehicle sales has sparked criticism.
The meeting saw revisions to GST rates on various items, with some facing reductions or complete exemptions. However, the Council deferred a decision on reducing insurance premium taxes. The increase in tax on used car sales is intended to incentivize the purchase of new electric vehicles.
The changes have drawn sharp criticism from opposition parties. Samajwadi Party chief Akhilesh Yadav accused the BJP of manipulating GST rates for its benefit, alleging that frequent changes create uncertainty for honest businesses and benefit corrupt players. He claimed the constant revisions allow the government to extract money from small businesses and traders.
Congress spokesperson Supriya Shrinet echoed these concerns, referring to the GST as the “Gabbar Singh Tax,” referencing a notorious fictional villain, and highlighting the new 18% GST on popcorn. Her statement was laced with sarcasm, highlighting the perceived disconnect between the government’s policies and the realities faced by ordinary citizens.
The GST Council’s decisions will undoubtedly impact various sectors and consumers. The long-term effects of the increased tax on used cars and the overall volatility of GST rates remain to be seen. The debate over the fairness and transparency of the GST system continues to rage on.
First Piper 