PM's 'Gabbar Singh Tax' is now turning into 'Grihasti Sarvanash Tax': Rahul Gandhi

Short description; Hike in taxes on pre-packed food items and hotel stays!

On Wednesday, congress leader Rahul Gandhi hit Prime Minister Narendra Modi over the rise in Taxes on Pre-packed food items and hotel stays. 

The Gabbar Singh Tax is Now turning into Grihasti Sarvanash tax (household destruction tax), says the congress leader over hike in tax. 

The Prime Minister's 'Gabbar Singh Tax' has now taken a formidable shape of 'Grihasthi Sarvnaash Tax' (household destruction tax)," Gandhi said on Twitter.

He cited a news report that taxes on food items, studies and hotel stays would become expensive.

The former Congress chief had dubbed the Goods and Services Tax (GST) as "Gabbar Singh Tax" earlier.

Pre-packed and labelled food items like meat, fish, curd, 'paneer' and honey will now attract GST, a tax that will also be levied on the fee that banks charge for the issue of cheques.

The panel headed by Union Finance Minister Nirmala Sitharaman and comprising representatives of all states and UTs, on the first day of the two-day meeting accepted the GoM's recommendation for reviewing the exemption from GST that packed and labelled food items currently get.

So pre-packed and labelled meat (except frozen), fish, curd, paneer, honey, dried leguminous vegetables, dried makhana, wheat and other cereals, wheat flour, jaggery, puffed rice (muri), all goods and organic manure and coir pith compost will not be exempted from GST and will now attract a five per cent tax.

Similarly, an 18 per cent GST will be levied on fees charged by banks for the issue of cheques (loose or in book form). Maps and charts, including atlases, will attract a 12 per cent levy. Goods that are unpacked, unlabelled and unbranded will continue to remain exempt from GST.

Besides, a 12 per cent tax on hotel rooms below Rs 1,000 per day will be levied, as against a tax exemption currently.