GST gimmicks cannot mask fuel loot, says KTR in open letter to Modi

KT Rama Rao criticised the Modi government for hollow GST announcements and high fuel taxes, calling for real economic reforms. He demanded GST exemption for handloom products, lower taxes on essentials, and genuine steps to control inflation ahead of the GST Council meeting

Hyderabad: BRS working president KT Rama Rao on Tuesday said the Modi government was indulging in headline management through hollow announcements on GST while ignoring the devastating impact of fuel prices on ordinary Indians. He demanded that the Centre address core economic issues faced by people by implementing real reforms.

In an open letter to Prime Minister Narendra Modi ahead of the GST Council meet, Rama Rao presented clear demands to the Centre on behalf of the people of India. He urged the Union government to act with sincerity and abolish GST on handloom products. Asking the Centre to cut taxes and remove all cesses on petrol, diesel and LPG, he demanded that the government reduce GST on essential commodities, instead of token gestures and also demonstrate genuine intent to control inflation rather than push political narratives.

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He also appealed to the Telangana government to push strongly for these reforms at the upcoming GST Council meeting.

The BRS working president termed the Centre’s campaign around the abolition of the 12 per cent GST slab as nothing more than a distraction.

“This government cannot loot people through petrol, diesel and LPG taxes and then claim heroism by saving a few rupees with slab adjustments. That is not governance, but gimmickry,” he said.

Rama Rao argued that lowering fuel prices was the only genuine way to reduce inflation. He pointed out that despite global crude oil prices returning to 2014 levels, Indians continue to pay record-high rates because of the Centre’s high excise duties and cesses.

“Cesses are not shared with States. This is unjust and also undemocratic,” he asserted, reminding the public that the BJP government had imposed GST on essentials like milk, curd, pulses, and salt, while now pretending to offer relief through token measures.

“Abolishing the 12 per cent slab, which accounts for just 5 per cent of GST revenue, is not reform,” he added.

Reiterating a long-standing BRS demand, the former Minister sought complete GST exemption for handloom products, calling the sector both a livelihood source and a custodian of India’s heritage. He recalled that the Telangana government under K Chandrashekhar Rao had supported lakhs of weavers through schemes like Nethanna Ku Cheyutha, while the Centre chose to burden them with GST.

“It is shameful to tax a sector that is a symbol of our civilisation,” he said.

Rama Rao warned the Prime Minister against repeating a decade-long pattern of promises without delivery. The Modi government was collecting lakhs of crores from fuel taxes and now trying to take credit for marginal GST tweaks that may save a few rupees, he said.

“You cannot loot thousands every month and then claim credit for saving tens. If there is sincerity in what you said in your Independence Day speech about a ‘real Diwali’, start by reducing fuel prices. Only then people will believe that your promises are not just jumlas,” he said.