Congress MP slams Modi Government for 'gift of mahangai' on New Year

GUWAHATI: Amee Yajnik, a Congress Rajya Sabha MP today chastised Prime Minister Narendra Modi for the rampant inflation across the country.

"The New Year gift by the Modi Government to all of us is new inflation. I and the Congress Party take this opportunity to wish a Happy New Year-2022 to all of you! May your new year be full of happiness, prosperity, progress, and enthusiasm. Every New Year Day, we used to wish each other for happiness and prosperity. However, have you ever thought about what our government is giving us on the New Year for our happiness and prosperity? What are Modi Ji and his Government wishing for us? Like for the last seven years, this year also the gift given to the people of the country by the Modi government is gift of mahangai- price rise and inflation," the MP told the press in Guwahati.

The MP added that the "new inflation is coupled with a consistently high unemployment rate above 7.5%+ during most of the year 2021."

The Congress MP further questioned whether to thank the PM for this unusual gift.

"The inflationary pressure is mounting, with November 2021 WPI at 14.23%, which is at over 10 years high, and its impact is likely to be felt more imminently in the New Year going ahead. As we usher in the New Year, be prepared to spend more on basic items of daily use- what to say about goods of luxury. From buying clothes and footwear to withdrawing our own money from ATMs is going to be expensive."

In the new year, clothes are likely to get more expensive, the MP said, adding that finished goods such as apparel and textiles are set to get more expensive from January 1, 2022, with the Union government increasing the GST on such items from 5% to 12%.

"The GST rate on apparel costing up to Rs 1,000 per piece has been hiked from 5% to 12%. Also affected by the same hike are rates of textiles, including woven fabrics, synthetic yarn, blankets, tents, and accessories such as tablecloths or serviettes.

Due to the opposition of the Congress Party and the Congress-ruled states and fearing an impact on the elections in 5 states, this increase has now been postponed till February 28 in a hurry. This date may get extended by 1 month due to elections. It may be worth to note that the decision was not reversed- it was postponed. This tax will be imposed again on the people as soon as the elections are completed."

The MP predicted that over 15 lakh jobs in main and ancillary units would be lost because of raised GST and therefore unviable increased cost of production.

Because the unorganized sector accounts for over 80% of fabric production in the country, raising the GST on fabrics to 12% will hurt power loom and handloom weavers' business and employment, the Congress leader said.

"Due to extraordinary price increases in raw materials like yarn, packing materials, and freight, the market will likely experience a 15-20% price increase in clothing. Individuals who purchase clothing for less than Rs 1,000 will be the most affected."

The MP also said that footwear is likely to get more expensive as the GST rate on footwear (costing up to Rs 1,000 per pair) has also been hiked from 5% to 12%.

"One of the most frequently mentioned issues in the community is the high inflation, prices of vegetables, and FMCG (Fast Moving Consumer Goods) essential goods that people buy, and now if GST rates are raised on the apparel and footwear sectors, it will further strain household budgets," Yajnik said.

The price of FMCG consumer goods will increase by 6 to 10%. Be it Dabur, Parle, Britannia, Marico or other companies, everyone is raising the prices of everything from biscuits to soap.

Also, withdrawing our own money from ATM will be expensive as the RBI has approved to increase the charge on cash withdrawal after free transactions. According to RBI, banks will charge Rs 21 from their customers after free transactions.

The MP also said that booking vehicles, and buying automobiles will also get more expensive in 2022.

Yajnik also criticized the rise in prices of fuel, cooking gas cylinders, oil, lentils, tea leaves during the 7 year reign of the BJP.

"Lentil, gram, kidney beans, tomatoes, onions, vegetables - every food item being snatched away from the plate of the poor," said Yajnik.

Claiming that Modi government is synonymous with inflation, the MP added that both Modi and inflation are harmful to the country.

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