Kottayam (Kerala), Sep 11 (PTI) Kerala BJP president Rajeev Chandrasekhar on Thursday rejected the Left government’s claim that the state would lose revenue after the central government cut GST rates.

He said there would be no loss. Lower prices, he argued, would raise people’s purchasing power and in turn boost Kerala's tax income.

State Finance Minister K N Balagopal had warned that the state could face an annual shortfall of Rs 8,000 to Rs 10,000 crore and demanded compensation.

Addressing a press conference here, Chandrasekhar countered that the real reason people were not feeling the benefits of GST reform was Kerala's unchecked price rise.

"When GST was passed in 2016, both the Congress and the CPI(M) opposed it in Parliament. At that time, they called it the 'Gabbar Singh Tax.' No one has forgotten how Congress and the CPI(M) tried to create confusion among the people and mislead them," he said.

The prime minister had then said that within 10 years of implementation, the economy would begin to see the benefits of GST, Chandrasekhar said.

The prime minister also said that within five to eight years, it would be possible to reduce tax rates. "That promise has now been fulfilled," the BJP state president said.

He said after strengthening the nation’s economy over the past 10 years, for the first time in independent India's history, the Union government has raised the income tax exemption limit to Rs 12 lakh.

"Taxes on medicines and food have been completely removed. Essential goods required to meet the basic needs of ordinary people have been brought under a five per cent tax rate," Chandrasekhar said.

He said if Chief Minister Pinarayi Vijayan and Congress leader Rahul Gandhi have the courage, they should be ready to discuss these concessions.

"While the Centre is reviving the economy that had collapsed during 10 years of UPA rule and extending welfare-oriented reliefs, the benefits given by the Union government should not be denied to the people of Kerala," the BJP leader said.

He also said CM Vijayan's remark that Kerala's culture is not to vote for the BJP is deplorable.

"What has held back Kerala's development is the political culture of both the Left and the Congress-led fronts. The vision of a developed Kerala put forward by the BJP is the real Kerala model. Only by bringing change to the state's political culture can the dream of a developed Kerala become a reality," Chandrasekhar claimed. PTI COR TGB KH

GST rate cuts disputed as causing state revenue shortfalls; central compensation and fiscal impact debated. Dispute over recent GST rate cuts features the state warning of a revenue shortfall and seeking compensation, while the BJP state president rejects that claim, arguing lower rates, removal of taxes on medicines and food, and higher income tax exemptions will boost purchasing power and overall tax receipts; the exchange raises fiscal federalism and compensation mechanism issues when central tax reforms affect state revenues.