GST reforms 'Diwali Dhamaka', meant to better lives, says PM

NEW DELHI: A day after the sweeping reforms in the Goods and Services Tax (GST), Prime Minister Narendra Modi hailed, what he called, the "Diwali Dhamaka", and said they are part of a string of reforms introduced by his govt to fulfil people's aspirations and boost growth."If I sum up the reforms, I can only say it will make India look great. There are five gems attached to the economy: first the tax system became much simpler; second, the quality of life of the citizens would get better; third, both consumption and growth will get a new booster; fourth ease of doing business will boost investment and jobs; and fifth, the partnership between the states and Centre will strengthen cooperative federalism," he said.The use of "Diwali Dhamaka" was seen as a reference to the deadline the PM had set for the benefits of the reduced rates on a whole range of goods and services to reach the consumers during the month-long festive season which has traditionally seen surge in consumer spend.The Prime Minister, who was speaking at an event to felicitate the winners of National Teachers' Award, recalled the reduction of income tax rates in this year's budget which have meant that incomes of up to Rs 12 lakh are exempt from tax.

Modi said GST reforms will help local industries and, as a consequence, promote Swadeshi, while he urged teachers and students to take this movement forward.The PM criticised the Congress regime for heavily taxing the common people. "There was so much tax in the Congress era. The condition was such that even Congressmen children's toffees were taxed at 21%," he said.The GST reforms announced by govt Wednesday have brought most of the goods under a two-tier tax structure of 5% and 18%, while keeping sin goods under 40% tax.

The new reformed duties will come into effect on Sept 22, which is the first day of Navratri.Modi also slammed the previous Congress govts for levying high taxes on kitchen essentials and items related to farming and agriculture, or even medicines which have been brought down to 5% or NIL."Had that regime continued, you would have been paying Rs 20-25 tax on every purchase worth Rs 100. But the aim of our govt is to ensure maximum savings in the lives of common people, and to make people's lives better," the PM said.He also referred to the law passed by Parliament recently banning online betting and gambling. This, he said, would safeguard the future of the country's youth. "Gaming is not bad, but gambling is, and the future of our youth must be safeguarded," he said, adding that India can dominate the global online gaming market if it works in the right manner.