With the rollout of the Goods and Services tax (GST) reforms on Monday the BJP-led NDA government at the Centre got busy explaining its benefits to the nation with Union ministers, including Nirmala Sitharaman, Amit Shah, Ashwini Vaishnaw, and others, interacting with general public either through social media platforms or personal meetings.
Vaishnaw, who holds the ministries of Railways; Information and Broadcasting; Electronics and Information Technology, said in a press conference here that the entire nation is excited about the GST reforms brought in by the Narendra Modi government as they would end up saving a lot of money while buying stuff for daily use.
“I was at RK Puram market (before coming to this press conference), and people were excited about the tax reforms that are allowing them to buy things with the reduced rates,” he told reporters.
Displaying the copy of a newspaper, the minister said it’s already in the press, and most of the newspapers have explained in detail how items of daily need have become more affordable. He criticised the Opposition political parties, who have been critical of the tax cut, saying the UPA government charged more taxes than the present one.
Citing the example of cement, Vaishnaw said there was a 30 per cent tax on the commodity that is very basic and needed to make homes, whereas we, at the moment, are charging only 18 per cent on it. Similarly, footwear had 18 per cent of tax during their regime, and has brought it down to only five percent.
Things as basic as shampoo and toothpaste had 30 per cent tax on them under the UPA rule, but we have reduced it to 5 per cent, the he with a sense of pride.
The minister further said that as the consumption increases with the new tax regime, an increase of Rs 20 lakh crore in GDP is expected, which in turn would attract more investment.
To a query about the steps the government has taken to ensure that the benefits reach the consumers, he said most companies and business houses themselves declared that they would pass it on to them, in case they don’t do so, the government would take strict action against anyone not complying with the orders.
He said the reforms are aimed at making life easier for people in general, and it would help the country’s GDP grow faster, resulting in sharp economic growth.
Union ministers Shah and Sitharaman have echoed similar views on the tax reforms, praising the government for ensuring the much-needed relief to the general public with the new tax regime.
Under the GST reforms, the new system introduces a two-tier structure. Until now, GST had been levied across four tax slabs – 5, 12, 18, and 28 per cent – and included a compensation cess on luxury goods.
Starting September 22, GST rates have been reduced for daily-use items like snacks, coffee, ghee, paneer, butter, ketchup, jam, dry fruits, and ice cream. The GST on goods like TVs, air conditioners, and washing machines has also been reduced.
The taxes on medicines have also been reduced from 12 to 5 percent, with critical life-saving drugs for cancer, genetic and rare disease being exempted from the tax altogether.