PC to Modi: Is CEA also stupid?
■ In a series of tweets, former finance minister hits back at PM over GST
A day after Prime Minister Narendra Modi hit out at Congress vicepresident Rahul Gandhi for demanding a 18 percent cap on GST, the Congress has hit back.
Mr Modi on Wednesday said that a “recentlyemerged economist” was propagating a “grand stupid thought” GST by suggesting a uniform GST rate of 18 per cent.
Former finance minister and Congress leader P. Chidambaram said, “If it is Grand Stupid Thought to argue for a cap of the tax rate at 18 per cent, then CEA Dr Arvind Subramanian and many other economists are stupid. Is that what PM is saying?”
In a series of tweets, Mr Chidambaram hit back at the Prime Minister.
He asked, “Has PM read the CEA’s report on Revenue Neutral Rate? Did not CEA recommend an RNR of 15- 15.5%? Why can’t the normal GST rate be 15% and RNR plus rate on luxury goods be 18%?”
The former finance minister further went on to add that the policy of the current government is to tax and spend. He added “Example: when crude oil prices fell by 50 per cent, said 5,000MW of stressed power assets, no tender for power purchase, and no demand for power. Yet, the government claims that “all is well with economy!”
During the election campaign in Gujarat Congress vice- president Rahul Gandhi had attacked the government over the hasty implementation of the GST. He had also termed GST as “Gabbar Singh Tax”.
The Congress has accused the government of having faulty economic policies that have led to unemployment.
If it is Grand Stupid Thought to argue for a cap of the tax rate at 18 per cent, then CEA Dr Arvind Subramanian and many other economists are stupid. Is that what PM is saying? P. Chidambaram,
Former FM