VISAKHAPATNAM: Union Finance Minister Nirmala Sitharaman said the Goods and Services Tax (GST) has been simplified to reduce the burden on people while ensuring wider acceptance.
“The reforms will help strengthen Prime Minister Narendra Modi’s vision of Viksit Bharat,” she said.
At a GST outreach and interaction programme, ‘Next Gen GST Reforms,’ held in Visakhapatnam on Wednesday, she interacted with representatives of trade associations, and clarified their queries. Later, through a presentation, she explained the revised GST structure, past reforms, and items exempted from tax.
She said the earlier four tax slabs of 5%, 12%, 18% and 28% have now been streamlined into two slabs of 5% and 18%. “Almost 99% of the items earlier under the 12% slab are now under 5%, while about 90% of the items under the 28% slab have been moved to 18%. The changes will come into effect from September 22, and will ease expenses for poor and middle-class families,” she said.
The Finance Minister also noted that essential sectors have been given priority. “Medical equipment and medicines are exempted from GST, while tax on agricultural equipment, and items related to MSMEs has been reduced. Revenue from GST is being used for welfare schemes and infrastructure such as highways, ports and airports,” she explained.
Andhra Pradesh Finance Minister Payyavula Keshav described the reforms as a “landmark decision” that came after detailed discussions in Council meetings with all States. “Prime Minister Modi managed the national economy during the Covid-19 pandemic without letting it collapse. It was like supplying oxygen to Andhra Pradesh when it was in the ICU,” he remarked.
State Health Minister Y Satya kumar Yadav praised Sitharaman’s handling of the Finance Ministry during difficult times. “These reforms will benefit the poor. Under Prime Minister Modi’s leadership, India has moved from the 11th to the 4th largest economy in the world,” he said, adding that the country is on course to reach the top position.
BJP Floor Leader in the Assembly P Vishnu Kumar Raju, BJP State president PVN Madhav, representatives from business associations and taxpayers’ associations were present.