Congress spokesperson Randeep Singh Surjewala said that the Modi Government gave a New Year gift to all of us in the form of new inflation for the year 2022. This new inflation is coupled with a consistently high unemployment rate of almost 10 percent for most part of the year in 2021.
Surjewala said that the inflationary pressure is mounting, Wholesale Price Index (WPI) was 14.23% in November 2021, highest in last 10 years, and its impact is likely to be felt more imminently in the upcoming New Year. So, likewise, as we usher in the new era and get prepared to spend more on all items, be it the daily use items/consumer goods or steel, cement and electrical items or some luxurious item. From buying daily use clothes and footwear to withdrawing our own money from ATMs or using the Toll Roads, everything is going to be expensive.
In a press conference Surjewala said, have a look at the 13 ill-effects on our lives due to the “Modi-made inflation” from January, 2022:
Clothes to get more expensive
Finished goods such as apparel and textiles are all set to get more expensive from January 1, 2022, because the BJP led Union government is going to increase 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%. The same hike is also going to increase the rates of textiles, including woven fabrics, shirt-pant &synthetic yarn, pile fabrics, blankets, tents, and accessories such as tablecloths or serviettes, rugs and tapestries.
Due to the opposition of the Congress Party and the Congress-ruled states and seeing the upcoming elections in 5 states, now this increase has been hurriedly postponed till February 28. This date may get extended by 1 month if elections are delayed. Please note that the decision was not reversed. This tax will be imposed again on the people as soon as the elections are over.
The impact of the above is over 15 lakh jobs in main and ancillary units of textile industry would be lost because of the above GST increase.
Over 80 percent fabric production in the country is done by the unorganised sector. Raising the GST on fabrics to 12% will hurt the business and employment opportunities in power loom and handloom weavers.
Due to extraordinary price increases in raw materials like yarn, packing materials, and freight, shortly the market is likely to experience a 15-20% price increase in clothing.
According to the garment industry, 85 percent of the clothes sold are priced below Rs 1,000.
The textile dyeing or printing job services covered under the Chapter 50 to 63 of GST Act will attract 12 percent GST (registered entities) or 18percent GST (unregistered entities).
Footwear to get more expensive
The GST rate on footwear (costing up to Rs 1,000 per pair) has also been hiked from 5% to 12%. It is an attack on poor and common people as it will further strain their household budgets.
“Cloud kitchens” have been brought under the Food delivery services and restaurant service, they will now attract5 per cent GST.
FMCG (Fast Moving Consumer Goods) Prices will increase up to 10%
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 FMCG prices from biscuits to soaps.
Withdrawing our own money from ATM will be expensive
RBI has approved to increase the charge on cash withdrawal after free transactions. According to RBI, banks will now charge Rs 21 per transaction from their customers after the free transaction.
Booking Auto Rides Online to Cost More
Be prepared for auto rickshaw rides booked through app aggregators like Ola and Uber to get costlier. The Government will levy a 5% GST on auto rides booked online from January 1, ending an existing exemption.
Buying a car or automobile will be expensive
In the New Year 2022, we have to pay a higher price to buy cars from almost all car and auto companies, including Maruti Suzuki, Renault, Honda, Toyota, and Skoda. Auto companies will increase prices due to an increase in cost. Tata Motors had already announced to hike commercial vehicle prices by 2.5% from January 1, 2022
Cement prices to rise to Rs 400 per bag
In 2021, cement prices increased by 15% – 20%. The situation is such that a 50 kg bag of cement, which was sold for Rs 330 / 340 a year ago is now in the process of crossing Rs 400.
The price of steel soaring to new highs
Steel companies increased steel prices by 215 percent between year 2020 and December 2021. In November 2021 alone, steel companies raised steel prices by Rs 3,000- Rs 3,500 per tonne. The Reason: Competition is over in the steel industry, and now it is in the hands of a handful of companies – Tata Steel, Jindal Steel, ArcelorMittal Steel. There is a silent consent of the Modi government in this regard, and while the prices are rising, and people are suffering. This trend is going to continue in 2022 too.
India Post Payment Bank increased the charge
India Post Payment Bank (IPPB) account holders will now have to pay a charge for withdrawing and depositing cash over a specific limit from January 1. Cash withdrawal up to 4 times every month from Basic Savings Account will be free. After this, 0.50% charge will have to be paid on every withdrawal.
GST has become applicable on the services rendered by the club or association to its members from the retrospective date of 1st July, 2017.
Now 5 percent GST will be levied on nursery children’s drawing tool kit. Now Learning-kit books for pre-school children will draw a 5 per cent GST rate. Remember that there is no GST on books. But if the drawing sheets that are taught to children are not in the form of a binder, then strangely enough, 5 percent GST will be levied on it.
Surjewala said that in the last seven years, after coming to power in 2014, Modi government has increased the prices of commodities.
Petrol of Rs 71 per Ltr and Diesel of Rs 56 per Ltr has almost touched Rs.100 per Ltr. Cooking gas cylinder of Rs 400 has crossed Rs 1000. Cooking oil has increased from Rs 90 to Rs 200 to Rs 250 per Ltr. Lentil Prices has crossed Rs 150 per kg from Rs 60 per kg. People can’t even drink a cup of tea comfortably. Tea prices have now increased to Rs 300 per kg to Rs 400 per kg from Rs 120 per kg. Not only this, even the price of salt has also increased from Rs 12 per kg to Rs 22 per kg., he added.