Addressing the nation on Sunday, Sep 21, Indian Prime Minister Narendra Modi praised the rollout of the Goods and Services Tax 2.0 reforms, describing them as a ‘double bonanza’ for the country’s emerging middle class.
He expressed wishes for the festival of Navratri, which will begin tomorrow. The GST reforms, which will include only a 5 per cent of 18 per cent tax slab, are aimed at uplifting the people out of poverty and economically benefit the citizens.
PM Modi said that items like daily essentials, medicines, health insurance and other vital products will be tax-free or will only have 5 per cent tax. He added that 99 per cent of the items that earlier carried a 12 per cent tax will now have just a 5 per cent tax.
“In the last 11 years, 25 crore people defeated poverty, becoming the neo middle class of the country that is now playing a vital role in the country. This neo middle class has their own aspirations, dreams,” he said.
The prime minister added, “This year government has given a gift to the people by making income of up to 12 lac tax-free. Naturally, when this income is tax-free, it will bring a significant change in the lives of middle-class people.”
“Now it is time for the poverty-stricken, the neo middle class, the middle class is getting a double bonanza. Reduced GST will allow citizens to fulfil their dreams. They will be able to build their home, purchase TV, scooter, bike and car,” PM Modi said.
Modi further noted that family vacations would become more affordable, as hotels will now be subject to reduced GST rates. He also invoked the motto of ‘nagrik devo bhava’ (the citizen is God), emphasizing the government’s commitment to public welfare.