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LATEST NEWS UPDATES | Windfall tax on corporations goes as 5% GST on food items kicks in -Prasanna Mohanty

Windfall tax on corporations goes as 5% GST on food items kicks in -Prasanna Mohanty

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published Published on Jul 21, 2022   modified Modified on Jul 22, 2022

-Cenfa.org

In continuation of its pro-corporate and anti-poor tax policy, the Centre imposes tax on the common man battling hunger and inflation while sparing corporates making windfall gains and record profits

In keeping with its anti-people and pro-corporate tax policy, the Central government withdrew the windfall tax on oil exports on July 19th – 19 days after it was imposed – with effect from July 20. This comes a day after a 5% GST was imposed, on July 18, on pre-packaged unbranded food items, like wheat, rice, curd, lassi, puffed rice, mutton and fish, which directly impact the poor fighting high inflation, chronic job crisis and hunger.

In June, the CPI inflation was 7.1% – higher than 6%, the upper band of RBI’s tolerance brand – and it is expected to remain above 6% for the entire FY23. The WPI inflation was 15.2% in June; it has been in double-digit for close to two years. In June, business portal CMIE reported a massive fall in employment, by 13 million (from 404 million in May to 390 million) with the labour force participation rate (LFPR) shrinking to its lowest level at 38.8%. India’s rank in the Global Hunger Index has fallen to 101, out of 116 countries – below that of Nepal, Pakistan, Myanmar, Bangladesh, and even Rwanda – indicating how impoverishment is growing.

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Cenfa.org, 21 July, 2022, https://www.cenfa.org/windfall-tax-on-corporations-goes-as-5-gst-on-food-items-kicks-in/?fbclid=IwAR0xurOlKDoslWPiGL3SheIptZfAK7_wZasYX5zbGqtcpaLz8W3a4922UYo


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