Daijiworld Media Network- New Delhi
New Delhi, Sep 4: Senior Congress leader and Rajya Sabha MP P Chidambaram has welcomed the Union Government’s sweeping rationalisation of Goods and Services Tax (GST) rates, but said the reforms have come “eight years too late.”
Taking to social media platform X, the former Finance Minister remarked, “The GST rationalisation and the reduction in rates on a range of goods and services are WELCOME but 8 years TOO LATE. The current design of GST and the rates prevailing until today ought not to have been introduced in the first place. We have been crying hoarse for the last 8 years against the design and rates of GST, but our pleas fell on deaf ears.”
Chidambaram further questioned the government’s sudden timing for the reforms, speculating whether it was driven by economic strain or political compulsions. “Sluggish growth? Rising household debt? Falling savings? Elections in Bihar? Mr Trump and his tariffs? All of the above?” he wrote.
Meanwhile, the All India Trinamool Congress (TMC) described the rollback as a “victory for common people,” claiming it was forced upon a “tone-deaf regime” after sustained opposition pressure. The party recalled West Bengal Chief Minister Mamata Banerjee’s strong criticism of taxing insurance premiums, which she had branded “cruel” and “anti-people.”
In a statement on X, the TMC said, “From day one, Smt. @MamataOfficial warned the Finance Minister that taxing insurance premiums was cruel and would deter families from securing their future. The Modi government has finally buckled under pressure. This rollback proves that BJP only acts when cornered. We will continue to fight every such Jono-Birodhi (anti-people) decision, in Parliament, on the streets, among the people.”
Finance Minister Nirmala Sitharaman, earlier in the day, announced what she termed the “Next-Gen GST Reform” at the 56th GST Council meeting. The move reduces GST rates to two slabs of 5% and 18% by merging the existing 12% and 28% slabs. The government has projected the reform as a Diwali gift, aiming to bring relief to households, farmers, businesses and the healthcare sector while boosting economic activity.