New Delhi, Sep 21 Prime Minister Narendra Modi said that the implementation of next-generation Goods and Services Tax (GST) reforms from September 22 will be a "double bonanza" for the “poor, neo-middle class, and middle class", as the reforms would "significantly ease the cost of living while boosting aspirations of millions".
"From tomorrow, only two tax slabs of 5 per cent and 18 per cent will remain. This means that daily-use items such as food, medicines, soap, toothpaste, and insurance will either be exempt or taxed at just 5 per cent," PM Modi said in his address to the nation on Sunday evening.
According to the Prime Minister, nearly 99 per cent of products earlier taxed at 12 per cent have now been moved into the 5 per cent category. He underlined that this reform would make essential and lifestyle goods — from groceries and medicines to TVs, refrigerators, two-wheelers, cars, and even hotel stays — more affordable for citizens.
Highlighting the socio-economic shift over the past decade, he said that in the last 11 years, 25 crore people have overcome poverty to emerge as a vibrant "neo-middle class".
"Now, with GST reforms, the poor, the neo-middle class, and the middle class are receiving a double bonanza. Their dreams — from building a house to owning vehicles and travelling — will become easier to fulfil," he added.
Earlier this year, the government made income up to Rs 12 lakh tax-free, a move that the PM described as a gift to the middle class.
The Prime Minister said that when combined with recent income tax exemptions, the GST reforms would lead to huge savings annually for the people.
“If we combine the income tax exemption and the GST exemption, the decisions made in one year will save the people of the country more than Rs 2.5 lakh crore," he said.
He also pointed to the enthusiasm among traders and shopkeepers, noting that the reforms reflect the mantra of "Nagrik Devo Bhavo"
The Prime Minister stressed that reforms in the tax system are aimed at making life easier for common people and ensuring that their dreams can be fulfilled.
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