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AP_VJA_28_09_CONGRESS_PRAVEEN_CHAKRAVARTHY_PC_AVB_AP10050
ETVBHARAT
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1/9/2025
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00:00
We are the only country in the world where a legitimately elected chief minister says
00:21
makes it even more difficult.
00:24
So we are saying…
00:40
Good morning.
00:44
First I am delighted to come to Vijayawada on behalf of the All India Congress Committee.
00:55
It's a long way from Delhi, but the All India Congress Committee leadership was very
01:07
particular that we do this in Vijayawada on behalf of the Andhra Pradesh Congress Committee.
01:20
It is a reflection of the importance of the Andhra Pradesh Congress and our plans and
01:28
strategy for building the Congress Party in Andhra Pradesh in the next five years.
01:38
Today I am going to talk about how the people of India, state governments and especially
01:56
southern states are being hurt, damaged, destroyed by GST.
02:15
So I am going to give some…
02:17
Let me start with a simple example.
02:22
Let us say a poor farmer in Andhra Pradesh has worked very hard for one month and saved
02:29
some money and he wants to go watch this film, this big hit movie Pushpa 2.
02:42
Let us say he wants to go to a movie theatre and watch Pushpa 2.
02:49
Let us assume there is a big business owner in Andhra Pradesh such as Heritage Foods,
02:55
some big business is there in Andhra, Heritage Foods.
02:59
So let's say the owner of that company also wants to watch Pushpa 2 in a movie theatre.
03:07
The poor farmer and the big company owner, when they go and buy that movie ticket for
03:14
Pushpa 2, they both pay 18% GST.
03:22
What is the issue here?
03:24
First, they pay 18% GST, very high.
03:31
Second, why is the poor farmer and the big business owner paying the same amount of tax?
03:42
For the poor farmer, he has worked for one month, saved some money.
03:47
For the big business owner, it is probably just five minutes of savings, the cost of
03:53
that movie ticket.
03:55
But they both pay the same percentage of tax.
03:59
Why?
04:00
This is why in economics, we call GST a bad tax.
04:09
It is a bad tax because the rich and the poor pay the same percentage of tax.
04:19
But if you take income tax, income tax is higher for rich people.
04:25
If you are earning crores, then you pay 35% or more, 40%.
04:29
If you are earning less, you pay 10 or 15%.
04:33
So income tax is a good tax.
04:36
But GST is a bad tax.
04:39
This is what we say in economics.
04:42
So then what should a government do?
04:46
A government should minimize bad tax and maximize good tax, correct?
04:53
That is what is good for the people of India, for the people of any country.
04:59
In every country in the world, if the government collects 100 rupees in taxes, 65 rupees come
05:11
from good tax, 35 rupees from bad tax.
05:15
Bad tax should be low, good tax should be high.
05:19
But the Modi government has done exactly the opposite.
05:26
See in India, the bad tax is 65, good tax is 35.
05:33
This means the poor people are getting hurt much more than the rich people.
05:43
Now let us ask why 10 years ago said the Modi government is a suit-boot-ki-sarkar, suit-boot-ki-sarkar
05:55
because the company owners get tax cuts, poor people have to pay for that tax cut.
06:06
So then what is the difference between, you can ask, the GST was a congress idea.
06:17
So what is the difference between congress GST and Modi's GST?
06:24
GST was an idea that was brought by what I call the father of modern India, father of
06:36
modern India and former prime minister of India, world famous economist Dr. Manmohan
06:43
Singh.
06:45
He wanted to bring GST when he was prime minister.
06:51
At that time he could not because there was one chief minister who objected to it.
07:01
That chief minister said no, we should not have GST and that chief minister was Narendra
07:08
Modi, chief minister of Gujarat at that time.
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