The Goods and Services Tax will be replaced with GST 2.0 that will be based on the universally accepted principle of a single, moderate rate (with a few exceptions) and will not burden the poor, the Congress party said in its election manifesto for 2024 general election.

“We will end the duplicitous ‘cess’ raj of the Modi government to deny states their rightful share of tax revenues by introducing a law to limit Union cess and surcharges to 5 per cent of gross tax revenues,” the 48-page manifesto said.

The Congress party also promised to ease the burden on the salaried class by maintaining stable personal income tax rates throughout its term.

“This will ensure that the salaried class is not subjected to rising tax rates and have the clarity to plan their finances over the medium-to-long period,” the manifesto said.

It promised to eliminate the “Angel tax” and all other exploitative tax schemes that inhibit investment in new micro, and small companies and innovative start-ups.

“Congress will lessen the burden of tax on MSMEs owned by individuals and partnership firms,” it said.

The shopkeepers and small retail businesses that face intense competition from online businesses will be given significant tax relief, the manifesto said.

The Congress government has opposed the current GST regime for its multiple rates that it claims are a burden on India’s poor.

In the past, the Congress has claimed that GST under Modi government had serious birth defects and the manner of their implementations has “wrecked the economy.”

It had stated that a single common base, rather than 5, for Centre and states, which subsumes all taxes, capped with a maximum limit of 18 per cent.

“We wanted to cap this tax at 18 per cent in the interest of affordability and to keep up domestic demand for Indian commodities.

“Modi’s chief economic adviser Arvind Subramanian advocated a lower cap of 15.5 per cent and was summarily ignored,” an explanation of the party’s approach to the issue placed on the Congress website read.

The poorly-drafted GST laws and the unfair manner in which the laws have been implemented have added considerably to the strained relations between the Centre and states, the manifesto said.