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