GST: Jaitley’s tax on physical disability raises eyebrows

The cost of living for differently abled persons in this country is generally higher as compared to others as India remains far from being disabled friendly. Besides facing social exclusion, the disabled persons always lack access to government facilities—such as public transport and education—as well as services. The new taxation system, Goods and Service Tax (GST), that imposes five to 18 per cent taxes on a range of aids and appliances used by them, is going to add to their woes.

Before the GST, which is set to roll out on July 1, experts say, the appliances and devices—including hearing aids, Braille watches and paper, coronary stents, artificial kidney, crutches, wheel chairs and artificial limbs—were exempt from all taxes like value added tax (VAT) and sales tax besides excise and custom duties.

According to the 2011 Census, 2.21 per cent of India’s population that counts for 2.7 crore people, is disabled. It further reveals that literacy rate amongst the disabled in India is 54.5 per cent, which is much lower than the 74 per cent overall literacy rate of the country.

Nevertheless, earlier this month, the GST Council revised tax levels on 66 items including cashew nuts, pickles, chutney, sauces, instant food mixes, computer printers and kajal out of 133 representations. Multiple representations by organisations and activists besides the finance ministers from Tripura and Kerala forced the Centre to bring down tax on some items, but quite a few have been left untouched.

A tweet by RollbackGST4PwDs: Tripura Finance Minister wrote to Central Government but no reduction on GST on disability aid:

Curiously, many digital campaigns with hashtags like #WhyTaxDisability? have been garnering support for revocation of the “tax on physical disability.” Delhi-based disability rights activist Dr Satendra Singh wrote on twitter: “Government is levying tax for the first time on eyes, ears, limbs of disabled i.e., braille, crutches, wheel chairs, hearing aids.”

Activists of the National Platform for the Rights of Disabled (NPRD) say that currently, a book in Braille costs five times more than the cost of a print version of the same book. “After the imposition of 12 per cent GST on Braille paper, the cost of Braille books is going to increase manifold,” they rue.

According to a press statement issued by the Disability Rights Organisations’ Forum, “This proposal militates against the spirit and mandate of the Rights of Persons with Disabilities Act 2016 which obliges the State to provide all assistive devices, equipment and Braille books to persons with disabilities either free or at affordable cost.”

Another statement jointly released by senior disability activists including SK Rungta (National Federation of the Blind), Muralidharan (National Platform for the Rights of the Disabled), Dipendra Manocha (National Association of Blind Delhi and Saksham), Onkar Sharma (All India Federation of the Deaf), Rajiv Raturi (Human Rights Law Network), Parag Namdeo (Sense International), Kapil Aggarwal (Federation of Disability Rights), Association of People Affected by Leprosy, earlier this month, urged the Union Finance Minister to revoke the proposed tax on aids and appliances used by persons with disabilities.

“People with disabilities pay all taxes. Still, they can’t access transport, education, employment and information because of inaccessible infrastructure. Despite multiple representations by NPRD and two state finance ministers, finally GST was brought down to 5 per cent for Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability at the GST Council meeting of June 11,” Dr Satendra Singh writes on his Google’s social page, adding, “Poverty and disability are interlinked in India and many disabled in rural areas are below poverty line. Even this 5 per cent (tax) should go.”

A change.org petition asks Union Finance Minister Arun Jaitley and Prime Minister Narendra Modi that disability goods should be taxed at zero rate. Till date, the petition has received 1,134 signatories.

The petition notes: “The Preamble of the Constitution embodies the concept of social justice and equality of status and opportunity to all the people of India. The disabled citizens have the same rights as other citizens to a decent standard of living and economic security, right to work, education, employment and also right to access and communication. If for normal citizens consumer goods, GST rate is zero, then why GST rate should not be zero for goods used by the disabled for survival and access? Because of lack of affordability for basic goods for the disabled, they are excluded and prevented from participating fully in equal terms in mainstream society, again burdening them with GST will add misery.”

“The cost of living for a disabled person is relatively high in a country like India, considering major public transport are not accessible. People who are educated and live in metros prefer to travel by own vehicles as public transport are not wheelchair accessible. In such a scenario, GST rate of 18 per cent on cars for physically handicapped persons is not justifiable. GST rate should be revised to zero to encourage person with disability to enter main stream and join jobs,” the petition states.

“We are proposing the Government to make separate HSN code for all the commodities and parts which are used in making goods used for basic living by the disabled so it can be easily categorised without any confusion and charge zero rate for all such goods,” the petition adds before wondering: “The question millions of disabled are asking is, if it is One Nation One Tax, then why GST is charged on the disabled community which was not previously existing?”

Union Finance Minister Arun Jaitley on 6 June stated on social media that daily consumer goods used by the common man among other things will become cheaper after GST, the petition further notes.