NEW DELHI: Prime Minister Narendra Modi on Thursday launched a sharp attack on the Congress while highlighting the government’s new Goods and Services Tax (GST) reforms, calling them the “biggest reform since Independence.”
Modi accused the previous Congress governments of taxing nearly every essential item, from daily-use goods to medicines. “Before 2014, whether it was kitchen utensils, agricultural products, medicines, or even life insurance, Congress imposed multiple taxes. Toothpaste, soap, hair oil carried 27% tax, food plates and cutlery up to 28%, while even children’s toffees were taxed at 21%,” he said.
He pointed out that basic tools of livelihood were also heavily taxed — cycles at 17%, sewing machines at 16%, and cement at 29%. “Farmers faced high input costs and low profits because Congress taxed agricultural goods heavily,” he added.
Under the new GST rationalisation, four tax slabs have been reduced to two — 5% and 18%. Taxes have been slashed on several items, including food, medicines, farm products, green energy, small cars, and bikes. Essential goods such as life and medical insurance, life-saving drugs, dairy products, and bread have been made completely tax-free.
Modi said the changes would come into effect from September 22, the first day of Navratri. “This Diwali will bring a double bonanza. People will begin benefiting from Navratri itself. This is the biggest reform of Independent India,” he declared.
He described the GST reforms as the “Panch Ratna” for the economy: a simpler tax system, better quality of life, a boost to consumption and growth, encouragement for investment and job creation, and strengthened cooperative federalism.
