CHENNAI: Chief Minister MK Stalin on Tuesday countered Prime Minister Narendra Modi’s claim that the people of the country would save `2.5 lakh crore through GST reforms and income tax relief, saying the BJP-led union government was concealing the fact that states bear 50% of the cost of such measures.
In a post on X, Stalin said while the centre was taking credit for the reforms, it had “failed to acknowledge or appreciate” that state governments were sharing 50% of the burden. “If these measures had been taken eight years ago, families across the country would already have saved many lakh crores more,” he said.
The prime minister, in an open letter to citizens on September 22, had said income tax cuts ensuring zero tax up to an annual income of `12 lakh, combined with GST reforms, would amount to savings of nearly `2.5 lakh crore for the people.
The GST restructuring, implemented from September 22 has simplified the four-tier rate structure of 5%, 12%, 18% and 28% into two slabs of 5% and 18%. PM Modi had said the reforms would strengthen the middle class and ease compliance. “But this is exactly what the opposition has been demanding from the very beginning,” Stalin said.
The CM further pointed out that the BJP-led union government is denying funds that rightfully belong to states. He cited the example of Tamil Nadu saying the state is being denied Samagra Shiksha funds only because it refuses to “accept Hindi Imposition”.
“When will this injustice end? India cannot grow by punishing states that defend their rights and stand for their people. Respect federalism, release the funds, and let the people benefit from what is rightfully theirs,” the CM added.