PM Narendra Modi said on Sunday that the next-generation Goods and Services Tax (GST) reforms, effective from September 22, will be a ‘double bonanza’ for the poor, neo-middle class, and middle class.
He added that the reforms will significantly ease the cost of living and boost aspirations for millions of citizens.
PM Modi explained that only two GST slabs, 5 per cent and 18 per cent, will remain. Daily-use items such as food, medicines, soap, toothpaste, and insurance will either be exempt or taxed at just 5 per cent.
He said, “Nearly 99 per cent of products earlier taxed at 12 per cent have now moved to the 5 per cent category. Essential and lifestyle goods—from groceries and medicines to TVs, refrigerators, two-wheelers, cars, and even hotel stays, will become more affordable.”
Neo-Middle Class Gains Momentum
Highlighting India’s socio-economic progress, the Prime Minister noted that over the past 11 years, 25 crore people have emerged from poverty to form a vibrant neo-middle class.
“Now, with GST reforms, the poor, neo-middle class, and middle class are receiving a double bonanza. Their dreams—from building a house to owning vehicles and travelling—will become easier to fulfil,” he said.
PM Modi recalled that the government made income up to ₹12 lakh tax-free earlier this year, describing it as a gift to the middle class. He emphasised that when combined with the GST reforms, people will save over ₹2.5 lakh crore annually.
The Prime Minister noted the enthusiasm among traders and shopkeepers, saying the reforms align with the mantra of ‘Nagrik Devo Bhavo’.
He added that the government aims to simplify the tax system, make life easier for common people, and help them achieve their dreams.
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