Prime Minister Narendra Modi emphasised on Monday that his government remains committed to reforming policies to ‘transform people’s lives,’ highlighting how the Goods and Services Tax (GST) has lowered the prices of essential household items.
‘For us, reforms are a means to improve the lives of 140 crore Indians. After the introduction of GST, goods for household use have become much cheaper. This has resulted in significant savings for the poor and common man,’ PM Modi tweeted, citing data that shows reduced levies have helped lower the cost of goods and services.
Modi’s comments indicate the government’s intent to continue pushing reforms despite having fewer seats in the Lok Sabha. Analysts have expressed concerns about the NDA regime’s ability to implement key changes as it navigates coalition politics. While some legislative changes might face delays, executive decisions are expected to move forward.
The statement comes nearly seven years after GST was introduced as the biggest tax reform since Independence. While the government has highlighted the benefits of GST, such as subsuming multiple taxes and eliminating various cesses and octroi, the opposition has criticised it.
The GST regime has helped create a system that checks tax evasion and ensures that levies paid at each stage of production, from raw materials to finished products, are refunded through tax credits. This system eliminates the cascading effect of taxes, effectively removing tax on tax and lowering prices.
The government has listed several products to demonstrate the reduced tax burden. For instance, mobile phones, refrigerators, washing machines, 32-inch TV sets, and fans, which attracted a 31.3% tax pre-GST, now see an 18% tax under the new regime that started in July 2017.
PM Modi’s remarks underline the ongoing commitment to reforms aimed at reducing the financial burden on ordinary citizens and improving the overall economic landscape.
