GST: Economic crisis will deepen, says Thomas Isaac
Thiruvananthapuram: Finance Minister Thomas Isaac said Saturday that the introduction of the Goods and Services Tax (GST) resulted in price rice and the economic crisis will become severe in the coming days.
"GST detrimentally affected exporters and small-scale businessmen. Earlier, businessmen with turnover upto Rs 1.5 crore were not required to pay excise tax. However, presently one must pay excise tax for small amounts. The present situation is that the price is not coming down even when the tax has come down. The situation earlier was that companies and corporates were not ready to invest in the India. Post-GST the situation has turned worse. The investments will increase only if the interests are reduced. The Reserve Bank is not decreasing the interest rates pointing out the increase in prices. One of the ways to overcome the present condition is to implement the anti-recession package. If the government is ready to reduce the tax on fuel prices, then it will be the best effective method in the anti-recession package. We had pointed out the practical difficulties of implementing GST earlier itself. However, our criticisms did not get sufficient consideration," Isaac said.