This year, Prime Minister Narendra Modi during his 79th addresses of independence from the Hradec Red Fort this year promised “double diwali”. Until October, he announced the main reforms of the tax on goods and services (GST) and reducing tax rates.
PM Modi, which promised the reform and lower tax rates Diwali, said, “This Diwali, I will do it for you double Diwali. Over the past eight years we have done the main reform in the GST.”
“We bring new generation GST reforms. This will reduce tax burden throughout the country,” said DD News PM, who said independence during his speech.
With the main Hindu festival of lights – Diwali for only a few months – this announcement comes when the government is preparing to simplify the GST structure.
From the merger of tax plates to the reduction of rates for some products, the government previously expressed its intention to reduce the number of tax belts and revise GST rates.
Currently, effective GST rates are 5%, 12%, 18% and 28% for most goods and services, with the exception of gold and silver. In the case of items such as cigarettes and top cars, the government uses additional taxes.
According to brokerage Citi falls approximately 20% of items – including packaged food and drinks, clothing and hotel accommodation – below 12% GST board, which represents 5-10% consumption and 5-6% of GST income.
“If most of them are moved to a 5% album and some up to 18% of the album, this could lead to a loss of approximately 500 billion rupees, or 0.15% of GDP, potentially taking over the overall political stimulus in the current financial year 2025-26 to 0.6% -0.7% of GDP,” Citi said.
PM modi greets nation
Before he went to the red fortress of his 12 address, PM modi greeted the nation through a post on the social media on the X.
It offers citizens to work hard to build a developed Bharat, and wrote: “I wish everyone a very happy independence day. May this day inspire us to keep working hard to realize the dreams of our freedom fighters and build Viksit Bharat. Jai Hind.”
(Tagstotranslate) Prime Minister Narendra Modi
