Bengaluru, July 22 The Karnataka BJP has slammed the state government over the alleged issuance of GST tax notices to small traders, accusing it of obstructing the Centre’s digital revolution.
Addressing a press conference at the BJP state office ‘Jagannath Bhavan’ on Tuesday, former national general secretary C.T. Ravi, who is also a member of the Legislative Council, charged that the Congress government in Karnataka appears to be conspiring to derail the Digital India initiative by issuing notices to small traders.
He said that while UPI payment systems have set global records, the Congress government has created fear and panic among the public.
“It is creating a climate of fear around the Centre’s digital transaction efforts,” he claimed.
Due to the notices, small traders have become afraid and have started putting up boards saying, “UPI payments not accepted, cash only.”
He also alleged that this climate of fear has led to complaints of bribes being demanded by middlemen and certain officials. He demanded that the state tax department withdraw the notices and rescue small traders from this fear psychosis.
Ravi claimed that Chief Minister Siddaramaiah instructed commercial tax officials to increase tax collections, which led to notices being issued to small traders.
Referring to Deputy Chief Minister D.K. Shivakumar’s comments, he said, “It’s like a monkey eating the fruit and blaming the goat for it.” He asked, “Who is the monkey here?”
He noted that the commercial tax department issued these notices, and yet Congress is blaming the Centre.
“You issued the notices, but your statements are misleading people to believe that the Centre is responsible,” he said.
He said that it is the Karnataka government that played the role of the monkey. “You’ve been issuing these notices since 2020. Even traders dealing in milk, fruits, vegetables, eggs, meat, fish, rice, ragi, jowar, wheat, and other essential goods – who are exempted from tax – have received notices,” he claimed.
Ravi further pointed out that such notices have not been issued to small traders anywhere else in the country – only in Karnataka.
“If states like Kerala and Maharashtra had also issued similar notices, then you could have claimed it was a central decision. But that’s not the case,” he said.
He clarified that in the service sector, tax exemption exists for businesses with an annual turnover below Rs 1.5 crore. If it exceeds that, only 1 per cent tax is levied – 0.5 per cent each to the Centre (CGST) and the State (SGST).
“This is clearly documented in official communication. Then why are the CM and Dy CM blaming the Centre’s policy? Accept that the mistake lies with your own government. Withdraw the notices. Small traders have started protesting, and we morally support their protest. BJP leaders will also join them,” Ravi declared.
He said there are proper ways to raise revenue for the state, and that the government shouldn’t burden small traders. “Admit that your treasury is empty,” he urged.
“Bengaluru is the capital of India’s IT sector. This sector led the way in digital payments. Even vegetable vendors were accepting UPI – this was highlighted in international media. But now the Congress government is spreading fear. This decision must be rolled back,” he demanded.
Ravi criticised Chief Minister Siddaramaiah for saying that there’s no dearth of development in the state.
“Instead of trying to convince opposition parties, try listening to your own MLAs like Raju Kage, B.R. Patil, and Deshpande – they are saying no development is happening,” he said.
“If the treasury is overflowing, then why have you raised prices of essential services and commodities?” he asked.
“You've imposed cess on petrol and diesel, hiked power tariffs, and increased prices of milk products, metro fares, and bus fares. Yet, in your budget, you’ve borrowed Rs 1.16 lakh crore to cover the fiscal deficit. Despite this, you’re hosting 'Sadhana Samavesha' in Mysuru to boast about your achievements,” he taunted.
BJP spokespersons M.G. Mahesh, Dr. Narendra Rangappa, and BJP Mahila Morcha state president K.C. Manjula were also present at the press meet.
--IANS
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