Politically convenient, not economic: BJP slams Rahul Gandhi's GST remarks
Politically convenient, not economic: BJP slams Rahul Gandhi's GST remarksIANS

The BJP on Wednesday attacked Leader of Opposition (LoP) Rahul Gandhi over his recent comments on GST and manufacturing, calling them contradictory and disconnected from economic realities.

Reacting to Gandhi's remarks made during an interaction in Berlin, BJP Information Technology Cell Chief Amit Malviya said his statements reflect political convenience rather than a clear understanding of economics.

"For years, Rahul Gandhi labelled GST as the 'Gabbar Singh Tax,' blaming it for hurting consumers. Now, speaking from Berlin, he describes the same GST regime as pro-consumer and anti-producer," Malviya said in a post on social media platform X.

"These two claims cannot coexist. A tax system cannot simultaneously be accused of crushing consumers and privileging them at the expense of producers. This shift in language is driven purely by political convenience," he stated.

The BJP leader said that when indirect tax rates like GST are reduced, both consumers and producers benefit together.

Lower taxes reduce prices and make goods more affordable for consumers, while producers gain from higher demand, increased sales volumes and better use of their factories.

"This flip-flop alone exposes the absence of any economic knowledge; his fundamental understanding of economics is deeply flawed," Malviya mentioned.

Responding to Gandhi's allegation that the BJP has "disincentivised manufacturing," the BJP leader cited official data to counter the claim.

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"Manufacturing has been actively supported through policy measures such as the Production Linked Incentive (PLI) scheme," he mentioned.

The scheme covers 14 key sectors with an outlay of Rs 1.97 lakh crore. It has already attracted investments of Rs 1.76 lakh crore, led to production and sales of more than Rs 16.5 lakh crore, created over 12 lakh jobs, and resulted in incentives worth over Rs 21,500 crore being disbursed.

"These are direct incentives linked to output and competitiveness, making it incorrect to call the policy anti-producer," Malviya mentioned.

He also rejected Gandhi's claim that big Indian companies are merely trading Chinese goods instead of manufacturing in India.

He highlighted the electronics and mobile phone sector, where production has grown from Rs 1.9 lakh crore in 2014–15 to Rs 11.3 lakh crore in 2024–25.

"Rahul Gandhi's statement relies on shifting slogans rather than economic reasoning," Malviya added.

(With inputs from IANS)