Why Is FM Nirmala Sitharaman in the Spotlight Over Restaurant Owner’s Apology?”

New Delhi/ TNF

The controversy surrounding Finance Minister Nirmala Sitharaman has intensified following an incident involving a restaurant owner in Coimbatore. On September 11, during an event in Tamil Nadu, hotel owner Srinivasan questioned Sitharaman about the complications arising from GST (Goods and Services Tax). He also suggested that the GST rates on sweets and snacks should be harmonized.

Shortly after, a video emerged showing Srinivasan apologizing to the Finance Minister, saying, “Please forgive me for my remarks. I am not affiliated with any political party.” The apology has sparked criticism from opposition leaders, who accuse Sitharaman of mishandling the situation.

Here’s a breakdown of the incident:

1. Srinivasan’s GST Concerns: During the September 11 meeting with finance professionals in Coimbatore, Srinivasan, the owner of the renowned Sri Annapoorna hotel chain, raised concerns about varying GST rates on food items. He highlighted the discrepancy where cream-filled buns are taxed at 18%, while plain buns are not taxed. He also pointed out the difference in GST rates for sweets (5%) and snacks (12%), suggesting that the rates should be uniform as Tamil Nadu often combines sweets, snacks, and coffee in meals. His remarks were met with laughter from the audience, including a smiling Sitharaman, who promised to consider his suggestions.
2. Apology Video and Fallout: On the same day, the Tamil Nadu BJP shared a video on social media showing Srinivasan apologizing to Sitharaman. In the video, Srinivasan is seen with folded hands, expressing regret for his comments. The BJP later deleted the video amid growing controversy. Critics argue that the video’s removal and Srinivasan’s apology were politically motivated.
3. Opposition’s Criticism: Congress leader Rahul Gandhi criticized the central government, stating on social media that small business owners are dismissed when they seek GST reforms, while wealthy friends of the government receive preferential treatment. Congress President Mallikarjun Kharge described the incident as a demonstration of Sitharaman’s arrogance, calling it highly unfortunate.
4. BJP’s Response: Tamil Nadu BJP chief K. Annamalai apologized for the incident, admitting that it was a mistake to post the video of the private conversation between Srinivasan and Sitharaman on social media. He clarified that the BJP did not coerce Srinivasan into apologizing. BJP leader Vanathi Srinivasan also stated that Srinivasan was not pressured by the party to make the apology.

In response to the controversy, Finance Minister Nirmala Sitharaman expressed her displeasure with public questioning of tax policies. She emphasized the challenges in reducing taxes to zero and the need for funds to address national issues.

The incident highlights the tensions between government officials and business owners over tax policies and raises questions about the handling of public discourse and apologies in the political arena.