In an unprecedented move, the Modi government’s reach of ‘tax terrorism’ has extended to student research scholarships. AAP National General Secretary (Organisation) Dr. Sandeep Pathak condemned the proposal to impose GST on research grants received since 2017, calling it a first in global history.
The AAP Rajya Sabha MP lashed out at the government for stifling innovation and progress by taxing research meant for the nation’s development. Dr. Sandeep Pathak called for an immediate withdrawal of this regressive policy in the upcoming GST Council meeting.
Senior AAP leader and National General Secretary (Organisation) said, “The Modi government’s recent decision to impose a tax on research grants marks a dangerous new chapter in the BJP’s intention and ‘tax terrorism’ policy. They have proposed to impose GST on the grants given to research institutions, retrospectively from 2017. A show-cause notice has been issued to all premier institutes that they will have to pay GST on all the research grants they have received from 2017 till now. They have demanded a GST of around 220 crores, which includes premier institutes like IIT Delhi.”
The AAP Rajya Sabha MP continued, “This is happening for the first time in the history of not only the country but the entire world that a government is imposing taxes on research grants. The government argues that since research is a service, GST should be imposed on it. This is a very hysterical argument. Research is a service to humanity, it serves humankind for eternity. Research and Development (R&D) also takes the nation forward. The country’s development is based on this and the government is levying tax on it. This is outright ‘tax terrorism’.”
The National General Secretary (Organisation) affirmed that the AAP strongly condemns the proposal to impose GST on research grants. In the GST Commission meeting which is about to take place, we demand the government to withdraw it unconditionally. “If the government does not withdraw this policy, then the AAP will raise its voice against this proposal on every appropriate forum and will make every possible effort to make the government withdraw it,” he added.
Dr. Sandeep Pathak shared that the research funding is used for three major things. One is scholarships for research scholars, second on consumables i.e. the chemicals that scholars buy. And the third part goes into acquiring research equipment. Taxes are paid when research equipment is purchased and the consumables are also taxed at purchase. Now what remains is the scholarship for research students about ₹20,000 to 25,000, on which they are going to impose tax.”
He said, “PM Modi will have Adani and Ambani pay no taxes at all, but he will impose tax on these research scholarships. First, they’re already levying tax, while you should make a tax exemption on these things, instead of that you are introducing a double layer of taxation.”
The AAP leader mentioned that this is beyond anyone’s understanding. You can see in the USA, UK, Germany, South Korea, Singapore, and Canada, there is no tax on R&D anywhere. No developed country imposes any tax on R&D. The Modi government is probably the first government that is pioneering taxing R&D. I request the Modi government, ‘don’t ruin the country’.
“The United States gives about 57 billion US dollars (USD) every year and China gives 87 billion USD for R&D. India gives only 2.5 billion USD. This is a joke with the country. So on the one hand the government is not giving any money, on the other hand, they are levying tax on the money they are giving,” asserted the AAP MP.
Dr. Sandeep Pathak stated that the research community, research scholars, and scientists are expanding the horizons of their research. They are doing ambitious research in new areas. What is the government doing? Has the government ever paid attention to research facilities? Has the government ever thought to date whether the research facilities for scholars are enough? “I was also a scientist, you have to wait for months to do a small test and I am talking about premier institutes. If you do this in second-level research institutes, then it takes six to seven months for a small test,” he added.
The Senior AAP leader said, “I have three questions for PM Modi. Have you ever thought about research scholars? Have you ever sat and talked to those who are struggling so much for research facilities? Have you taken care of employment for the PhD scholars? Have you ever sat and talked with the research community? Have you ever done anything keeping in mind the research community or R&D?”
“You have only one thing, that is to impose taxes. You have ruined the life of the middle class by your tax terrorism. After the middle class, now your tax terrorism is reaching education. This is beyond understanding. Stop ruining the country. I request the Prime Minister to withdraw this GST proposal,” concluded Dr. Sandeep Pathak.
