GST reforms bring big relief to middle-class families: Vaishnaw

New Delhi: Union Minister Ashwini Vaishnaw on Saturday hailed the recent GST revision by the central government as a big relief for middle-class families nationwide. Vaishnaw, who has important portfolios such as railways, IT, and information & broadcasting, opined that the changes were a timely gift to relieve the economic burden on families.

Speaking at a press conference conducted at the BJP headquarters in New Delhi, the minister remembered the ordeal undergone by citizens under the pre-2014 tax regime. “Before 2014, India’s tax regime was characterised by a complex array of levies slapped on almost every product and service. The decentralised nature of this system imposed a disproportionate load on the common man, especially the middle class,” he stated. Various indirect taxes resulted in higher prices, making necessary items more expensive and compliance more onerous. Even after the introduction of GST in 2017 to simplify taxation by clubbing all indirect taxes into one, the rates remained a problem for common consumers.”

Vaishnaw explained that the recent GST reforms address these issues directly by cutting tax rates on a wide set of household items. “Life essentials like food, clothing, building materials, and household items have experienced reduced tax rates, becoming more affordable and within reach. The burden of tax on commonly used electronics like TVs, fridges, cell phones, power banks, and even solar panels has been considerably lightened. These changes will revolutionise family life for such product-dependent families,” he added. He also pointed out that the reforms bear testimony to the long-time commitment of Prime Minister Modi to the middle class. “While income tax reforms granted relief to individuals up to Rs 12 lakh in annual income, this GST reform is another step ahead,” the minister explained.

“Following decades of experience and stability in the GST system, the government has now made a bold choice of rate rationalisation, ease of compliance, and much-needed clarity in the system.” The timing of the announcement, on the inaugural day of the Hindu celebration Navratri, lends a festive touch to the relief being given to citizens.

The reforms are likely to benefit the country’s 140 crore citizens, especially middle-class families, by cutting down on daily expenses and enhancing financial health. Vaishnaw also referred to the wider economic benefits of the reforms. India’s GDP is now around Rs 330 lakh crore of which consumption is contributing about Rs 202 lakh crore.

Even a low 10 per cent rise in consumption, driven by the lower tax burden, would yield an extra Rs 20 lakh crore of demand in the economy,” he said. “This consumption boost will stimulate production, generate jobs, and perk up overall economic activity.

He also emphasised the contribution of savings, investment, and spending to economic growth. “With less taxes, families can either save more, buy more products, or invest in long-term assets. These activities not only contribute to greater family happiness but to the economic well-being of the country as well,” he elucidated.

“The reforms are a reaffirmation of Prime Minister Modi’s vision of empowering the middle class and strengthening the economy. The government’s approach blends fiscal prudence with empathy for the everyday struggles of ordinary citizens,” the minister added.

With the new GST regime now in place, the government hopes to trigger consumption, prompt prudent spending, and generate sustainable, inclusive growth. Households can expect better financial comfort and increased confidence, with the fruits of the reforms set to percolate down to homes across the nation. As the festival season sets in, this move has the potential to spread cheer and stability to crores of households across the country.