The Congress on Sunday said that the New Year Gift by the Modi Government to the people of the country is “New Inflation” as prices of several commodities have been increased.
Rajya Sabha MP Amee Yajnik speaking to the media in Guwahati said, “Every New Year Day, we used to wish each other for happiness and prosperity. However, have you ever thought about what our government is giving us on the New Year for our happiness and prosperity?”
She added, “Like for the last seven years, this year also the gift given to the people of the country by the Modi government is the gift of the mahangai-price rise and Inflation’.”
She added that the new inflation is coupled with a consistently high unemployment rate above 7.5% during most of the year 2021.
“Should we thank you Modi Ji, for this?”, she questioned.
She further added that the inflationary pressure is mounting, with November 2021 WPI at 14.23%, which is at over 10 years high, and its impact is likely to be felt more imminently in the New Year going ahead.
“As we usher in the New Year, be prepared to spend more on basic items of daily use- what to say about goods of luxury. From buying clothes and footwear to withdrawing our own money from ATMs is going to be expensive”, she added.
It may be mentioned that the Union Government has increased the tax regime on several items in the country due to which there is a possibility of the price of those items increasing.
Finished goods such as apparel and textiles will be more expensive from January 1, 2022, as the GST on such items has been increased from 5% to 12%.
The GST rate on apparel costing up to Rs 1,000 per piece has been hiked from 5% to 12%.
Also affected by the same hike are rates of textiles, including woven fabrics, synthetic yarn, blankets, tents, and accessories such as tablecloths or serviettes.
The MP stated that due to the opposition of the Congress Party and the Congress-ruled states and “fearing an impact on the elections in 5 states”, this increase has now been postponed till February 28 in a hurry.
“This date may get extended by 1 month due to elections. It may be worth to note that the decision was not reversed- it was postponed. This tax will be imposed again on the people as soon as the elections are completed”, she added.
She further added that over 15 lakh jobs in main and ancillary units would be lost because of raised GST and therefore unviable increased cost of production.
Because the unorganized sector accounts for over 80% of fabric production in the country, raising the GST on fabrics to 12% might hurt power loom and handloom weavers’ business and employment.
Apart from this, the GST rate on footwear (costing up to Rs 1,000 per pair) has also been hiked from 5% to 12%.
One of the most frequently mentioned issues in the community is the high inflation, prices of vegetables, and FMCG (Fast Moving Consumer Goods) essential goods that people buy.
The Congress leader added, “If GST rates are raised on the apparel and footwear sectors, it will further strain household budgets.”
“The price of FMCG consumer goods will increase by 6 to 10%. Be it Dabur, Parle, Britannia, Marico or other companies, everyone is raising the prices of everything from biscuits to soap”, she added.
It may further be mentioned that RBI has also approved to increase the charge on cash withdrawal after free transactions. According to RBI, banks will charge Rs 21 from their customers after free transactions.
Rides booked through app aggregators like Ola and Uber to get costlier.
The Government will levy a 5% GST on auto rides booked online from January 1, ending an existing exemption.
Along with these, the GST and price have been increased on several other products as well.
Yajnik also stated, “Modi government has looted us by imposing high inflation in the last seven years, after coming to power in 2014.”
Putting out examples she said that petrol of ? 71 per Ltr and Diesel of ?56 per litre crossed Rs 100 per litre mark in the current government’s reign while cooking gas cylinder of ? 400 crossed ? 1000.