Finance Minister Nirmala Sitharaman highlighted how India’s latest GST reforms, launched on Monday, will help everyday people—from the poor and middle class to youth, farmers, women, shopkeepers, and entrepreneurs. These changes aim to ease the tax load and spark economic growth across the country.
Sitharaman pointed out that the new rate adjustments, focusing on 5 percent and 18 percent slabs, will boost local manufacturing and strengthen ties between the central government and states. “We need to push for faster growth, simplify business operations, and draw in more investments,” she said, echoing Prime Minister Narendra Modi’s recent national address. She credited the success of this major tax overhaul to collaboration with all states since the GST rollout in 2017.
In a post on X (formerly Twitter), Sitharaman criticized the opposition and its social media allies for spreading negativity and false claims, despite Modi’s upbeat and forward-looking speech.
The reforms cut taxes on many everyday items. Goods previously hit with 12 percent or 18 percent rates now mostly fall into the lower 5 percent category. Essential products, like some basics, even drop to zero tax. This means real relief for India’s 1.4 billion citizens, making life a bit easier on household budgets.
On the flip side, a new 40 percent slab targets harmful or super-luxury items, such as cigarettes, tobacco, pan masala, aerated drinks, and high-end cars. The GST Council—made up of reps from every state and union territory—unanimously greenlit these updates.
The central government expects these tweaks to quickly lower prices on essentials, encourage more spending, and rev up the Indian economy. Prime Minister Modi noted that nearly 99 percent of items once taxed at 12 percent have shifted to the 5 percent bracket. This covers everything from groceries and medicines to TVs, refrigerators, two-wheelers, cars, and even hotel rooms—turning daily needs and small luxuries into more affordable options for families nationwide.
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