"In the time of steep price spiral, the government should immediately stop new taxes so that the people of the country may not feel more burden," Gupta said in a statement.
He said, under pressure, the government has withdrawn VAT on textile and CNG but has imposed Service Tax on new items which is being recovered from today.
"Coaching and training institutes have come under the preview of service tax. If education and training is brought under the preview of service tax then lakhs of poor children may not get educated and trained. This may result in fall of education standard...Which will adversely affect development of Delhi," he said.
Gupta said, earlier if a family goes to a restaurant or a hotel for lunch or dinner then they used to pay 20 per cent VAT.
And since, this has been brought under the Service Tax, so the family will now have to pay 33 per cent as VAT and service tax which is a great injustice to the common man, he added.
He further said imposing tax on luxury items could be justified but imposing service tax on the items of daily use of common man could not not justified.
"In the interest of the people, the government should withdraw service tax or increase in any tax in the present Budget immediately," he said.
About 60 per cent total domestic product now comes under the purview of service tax. Previously, service tax of Rs 97,000 crore was being recovered which has now been increase to Rs 1.24 lakh crore, he added.
