On Independence Day, Prime Minister Narendra Modi, speaking from the Red Fort, announced the establishment of a high-level task force. Its mandate is to spearhead a new wave of reforms encompassing governance, taxation, and the delivery of public services.
The Prime Minister declared, "We have decided to form a task force for next-generation reform. Our aim now is to bring about all kinds of reforms," signalling a comprehensive approach to modernising the nation's systems.
In a festive gesture, Modi promised the public a "double Diwali" this year, teasing a significant economic announcement. He revealed that a major change is forthcoming, stating, "This Diwali, I am going to celebrate a double Diwali for you. The countrymen are going to get a big gift, there will be a drastic cut on GST on common household items." This statement hints at a major restructuring of the Goods and Services Tax (GST) framework.
Modi stressed that a review of GST rates is "the need of the hour". He said the government is preparing a "new-generation GST reform" specifically designed to ease the tax burden on ordinary citizens. "GST rates will be reduced drastically. Tax will be reduced for the common people," he confirmed.
This announcement coincides with the eighth anniversary of GST, which was introduced in 2017 and is considered one of the most significant tax reforms since India's independence. Over the past eight years, GST has unified India's indirect tax system and has made it easier for small and medium-sized businesses to operate.
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The Prime Minister's remarks are supported by recent data that show record-high GST collections and growing support from businesses for further simplification of the tax system. The proposed reforms are expected to create a more streamlined and transparent rate structure, making the system fairer for all.
With his dual message of structural reform and festive optimism, Modi has set the stage for a new phase in India's economic policy. As the new task force begins its work, there are high expectations for a GST overhaul that provides relief to consumers while also maintaining revenue growth. As Diwali approaches, both citizens and businesses are eagerly awaiting the "big gift" promised by Modi, a revamped tax system that could redefine India's financial landscape.
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