- The GST reforms, which kick in tomorrow, are a "double bonanza" for the poor, middle class, said PM Modi
- PM Modi underlined that the reforms symbolise the cooperative spirit between the Centre and the states
- He also said the GST move would benefit Micro, Small, and Medium Enterprises or MSMEs big time
The Goods and Services Tax (GST) reforms, which kick in tomorrow, are a "double bonanza" for the poor, neo-middle class and the middle class, underlined Prime Minister Narendra Modi in an address to the nation on Sunday.
These reforms, which have been hailed as the next gen reforms, said the Prime Minister will accelerate Bharat's growth story, enhance ease of doing business, attract greater investment, and ensure that every state becomes an equal partner in the nation's development.
"Next gen GST reforms being implemented from tomorrow, it is like 'GST saving festival'...From tomorrow, you will be able to buy your favourite items with ease. This is like a GST saving festival for every Indian," said PM Modi.
India adopted the GST in 2017, pooling in more than a dozen domestic state taxes in a bid to unify the economy on the principle of "one nation, one tax, one market". It was hailed as the biggest tax reform since independence. It had four tax slabs, of 5%, 12%, 18% and 28%. An additional levy was imposed above the tax of 28% on some items, such as cigarettes, luxury cars and high-end motorcycles. But it was criticised for being too complex.
Earlier this month, the GST Council simplified the structure to two tiers, 5% and 18%, from four, with some exceptions for luxury and "sin" goods.
During his speech, PM Modi underlined that the reforms symbolise the cooperative spirit between the Centre and the states.
PM Modi stressed all states will be equal stakeholders in the development race and urged them to give pace to manufacturing with 'Atmanirbhar Bharat' and swadeshi campaigns in mind.
"I urge all state governments to actively support the Aatmanirbhar Bharat initiative and the Swadeshi programme by accelerating manufacturing activities within their respective states. Focus on creating an environment that is conducive to attracting investments. Together, when the states and the central government work in unison, the vision of Aatmanirbhar Bharat will be realised," said PM Modi.
The way the country's independence got strengthened by the Swadeshi movement, similarly, India's prosperity will be empowered by the mantra of 'swadeshi', he said, urging people to take pride in selling and buying indigenous goods.
He also said the GST move would benefit Micro, Small, and Medium Enterprises or MSMEs big time.
"I have huge expectations from MSMEs. When India was at the peak of its prosperity, MSMEs were its foundation. We need to reachieve that. Our product quality should make India proud. Swadeshi will increase our prosperity," said PM Modi.
"We should buy made-in-India products. Every home and shop should represent swadeshi. When this happens, India will progress," he added.
