Prime Minister Narendra Modi on Thursday praised the new reforms approved by the Goods and Services Tax (GST) Council, calling them the “biggest decision since Independence” and a “double dhamaka” for people before Diwali.
Speaking at his residence during an interaction with National Awardee teachers, PM Modi said the new GST system will be simpler and will give a “double dose” of support and growth to the Indian economy. He listed five key benefits – a simple tax system, better quality of life, boost to consumption and growth, ease of doing business, and cooperative federalism.
The GST Council, led by Finance Minister Nirmala Sitharaman, decided to reduce the tax slabs from four (5%, 12%, 18%, and 28%) to just two – 5% and 18%. A special 40% slab will apply only to luxury goods like high-end cars, tobacco, and cigarettes.
This means many common items such as hair oil, corn flakes, TVs, and health and life insurance policies will now become cheaper. The new rates will start from September 22, which also marks the beginning of Navratri.
PM Modi also criticized the Congress for taxing even daily essentials in the past. He said his government is focused on increasing people’s savings and improving their lives.
