Centre's policy of charging GST deprived over 2 lakh from getting vaccine in Bengal
Kolkata: The Centre's policy of charging GST on vaccines has deprived more than 2 lakh people of getting Covid vaccines in Bengal so far.
Chief Minister Mamata Banerjee has repeatedly requested the Centre to do away with GST over vaccines. This comes when her government is providing free-of-cost vaccines to all its 10 crore people and investing crores for the same despite the distressed financial condition of the state due to the "double whammy" of the pandemic and Cyclone Yaas.
The Bengal government has so far spent Rs 140 crore to procure vaccines (both Covishield and Covaxin). According to a senior officer of the state government, the state, like all other consumers, needs to pay 5 per cent GST for procurement of vaccines. The calculation by the state government officers has revealed that the state so far has given more than Rs 6.67 crore as GST for the procurement of vaccines. Each dose of Covishield and Covaxin cost Rs 300 and Rs 400 respectively. "We would have procured at least 2.22 lakh doses (considering Covishield) more if we had not to pay the GST. The money that is getting drained out of the state's exchequer to pay the GST would have been used to procure more doses," said a senior state government officer.
"When vaccination is considered to be the main weapon to fight against Covid, our target is to bring the maximum number of people under the inoculation drive at the earliest. So around 2 lakh people getting deprived of the same is a serious issue that needs to be looked into with priority by the Centre. When the state government is bearing the expense to provide vaccines to its people, the Centre should come forward by doing away with the GST on vaccines to ensure a protective shield to a maximum number of people at the earliest, which in turn would help to avoid a third wave of the pandemic," the officer added.
The development comes when the state needs 8.6 crore doses for universal vaccination of everyone in the state and so far, as stated by the Chief Minister in a Press conference on June 2, more than 1.44 crore people in Bengal have received vaccines with a priority to provide the same to super spreaders. So far the state government has ensured the vaccination of more than 6.15 lakh vendors in different markets, 2.60 lakh transport workers and 3.63 lakh hawkers. The state will be receiving 22 lakh doses of vaccines in June compared to that of 18 lakh in the month of May against direct procurement.
The state government has released funds twice initially from its state budget and twice from the account of the state's emergency relief fund in which people from different sectors are donating to support the state in the fight against the pandemic.
Besides the Chief Minister, the state Finance Minister Amit Mitra has also stated in his letter to the Union Finance Minister Nirmala Sitharaman in this regard stating: "At the outset, I must express my deep disappointment at heft GSTs being proposed on items vital in the fight against Covid pandemic, at the 43rd GST Council meeting.
An 18 per cent GST on hand sanitiser was truly shocking when all governments are asking the common people to use it as the first line of defence against the dreaded virus. Instead of incentivising its use, the proposed GST was disincentivizing this life-saving item. Similarly, GST was proposed on masks and PPEs used by crores of common people and lakhs of health professionals, respectively. Similar was the case of imposing GST on vaccines!"
Secretary-General of Trinamool Congress Partha Chatterjee, while holding a Press conference at Trinamool Bhavan on Saturday, has also reiterated the demand for exemption of Covid vaccines from GST.
It needs mention that the GST Council had last month set up an eight-member group of ministers (GoM) to look into the demand.
