Note ban, GST have piled misery on poor, says Yashwant Sinha

RAJKOT: Describing the Goods and Services Tax (GST) and demonetisation as a cruel joke on the fragile Indian economy, former finance minister Yashwant Sinha said both these moves had only piled immense misery on India's poor and those on the edge of poverty have been pushed below the poverty line.

Sinha, who has virtually waged a war against the Narendra Modi government and finance minister Arun Jaitley, said that an inherently good tax system like GST was implemented without application of mind and undue haste.

Sinha is touring four cities of Gujarat on the invitation by activists of 'Lokshahi Bachao Andolan' (Save Democracy Movement) to share his views about the current state of economy and impact of demonetisation and GST.

"Daily amendments, daily changing rates and processes are a tribute to the failure of the government. This is not an issue pertaining to any one political party or government, but it is matter of national interest. The economy is in doldrums and all of us have to be concerned about it," Sinha said.

Scoffing at the process of online filing of returns, Sinha said, "How can a poor shopkeeper who hasn't even seen a railway line comprehend something like online."

The octogenarian claimed that Gujarat government had vehemently opposed GST when it was called by the parliamentary standing committee on finance which he chaired then. Sinha tore into PM's demonetisation move saying that the stated purpose of bringing in black money has not been serviced.

"In fact, Rs 40,000-50,000 crore more black money has been generated through agents, who deposited people's unaccounted cash in banks by taking commission," he said.

Stating that the state of Indian economy is worrisome, Sinha said, "Our economy is precariously balancing on one leg and we are not sure when even this sole support will collapse."

Accusing the government of not passing benefits of falling international crude oil prices, he said people have the right to question them as to where is all the money saved. Referring to the scrutiny of lakhs of cases of GST returns by the income tax, Sinha said the message being sent out to the world is that 'India is a land of thieves."

"Whenever the economy is in distress, the worst hit are poor and farmers who don't have voices. Lakhs of migrants from industrial hubs have returned to their villages after GST and note ban, hoping they would at least get one meal a day," he said lauding MNREGA launched by the former UPA government.