Cong's Tehseen Poonawalla Hails GST Reforms As A Precursor To India's Fast-Paced Growth, But With A Rider

(MENAFN- IANS) New Delhi, Sep 22 (IANS) Political analyst Tehseen Poonawalla on Monday welcomed the next-generation reforms in the Goods and Services Tax (GST), calling it a“positive but small first step” towards broader tax and economic reform. He also suggested that India has the potential to become world's second largest economy but for that, it will have to grow at 10-11 per cent.

Speaking on the occasion of Navratri, Poonawalla praised the intention behind the announcement but also raised serious concerns about the structural flaws within the current system.

“First of all, Navratri greetings to all my fellow Indians. We welcome what Prime Minister has said. This is the first step, a small step. Under GST nationalisation, there are still too many tax slabs. I don't understand why there is a 40 per cent GST slab. If an Indian earns money and wants to spend on something, 40 per cent is too high. These slabs must be removed. Right now, there is too much confusion within the slab system.”

He was especially critical of how GST is being administered by the bureaucracy.

“The most important issue is that GST has now become a tool of extortion. The officials managing GST are using it to extort money from people, from businessmen. It has become a tool for collection rather than for reform.”

On whether GST 2.0 sets India on a path to becoming an economic superpower, Poonawalla stressed that broader and bolder reforms are required.

“India will progress over the next 20 years. But we can achieve 10–11 per cent growth only if we undertake more reforms. First, we must reduce the number of bureaucrats by 50 per cent.”

He argued for a change in how industrialists are perceived in public discourse:

“We must stop treating industrialists like enemies. They are part of the country. If they invest in India, only then can jobs be created and the nation progress. They must be seen as essential stakeholders in the country's future.”

He also raised important questions about government policy on emerging sectors.

“What is India's crypto policy? Is it legal or illegal? If it's legal, how can someone be prosecuted for it? And if it's illegal, how is the government collecting taxes on it? There must be clear policy on AI and Fintech as well. A forward roadmap is necessary.”

“Only then can India become the world's second-largest economy in 15–20 years. This won't happen with 6–7 per cent growth; India must achieve 10–11 per cent GDP growth for such a transformation.”

The Next Gen GST reforms, rolled out this week, simplify the tax structure into fewer slabs and reduce the tax burden on over 375 items.

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