Bengaluru, Mar 19 (IANS): Congress President Rahul Gandhi said on Monday if his party is voted to power in the Lok Sabha elections, it will do away with the angel tax levied on investments in startups, terming it a "counter" to the philosophy of startups.

"Angel tax is counter to the philosophy of startups. We are going to get rid of this tax when we come to power," Gandhi said in this tech hub during an interaction with the city's entrepreneur community.

Angel tax is levied on the premium paid on investments in startups and unlisted firms to curb "laundering" under the Income Tax Act, 1961, as their valuations increase despite stagnant or declining revenues.

The Congress President interacted with the business community at a tech park on various issues, including jobs, goods and services tax (GST), banking system and medium and small businesses.

Gandhi also told entrepreneurs the current form of the GST, implemented by the Narendra Modi-led government, was a "disaster".

"When we wanted to introduce the GST, we were sure it had to be tested. The one introduced by the Modi government is a disaster. It is technically not a GST, it's multiple different taxes," Gandhi remarked.

On the banking system, the Congress chief said there was "massive monopoly" in it. "Opening up the banking system to small and medium businesses is fundamental," he said.