PM Modi says GST overhaul part of next-gen reform, will rein in prices

New Delhi, Aug 23 (IANS) Prime Minister Narendra Modi has reaffirmed his government’s commitment to ushering in next-generation reforms, with a particular focus on streamlining the Goods and Services Tax (GST).

Speaking at The Economic Times World Leader Summit in New Delhi, the Prime Minister said, “Reform, for us, is the pursuit of better governance.” He declared, “We are determined to make life easier for citizens and businesses alike. The upcoming GST changes will reflect that vision.”

The Prime Minister announced that the revised GST framework would be rolled out before Diwali, promising a reduction in prices of everyday household items and a more efficient tax structure.

The Centre has already released a draft blueprint for GST 2.0, which proposes a simplified two-tier system: 5 per cent for essential goods and 18 per cent for most others. This marks a significant departure from the current multi-slab structure, which includes rates of nil, 5 per cent, 12 per cent, 18 per cent, and 28 per cent, along with special rates for precious metals.

Last Monday, PM Modi chaired a high-level meeting with senior ministers, top bureaucrats, and leading economists to chart the course for these reforms. He later shared the development on social media, stating, “We are committed to rapid reforms across all sectors to enhance ease of living, ease of doing business, and national prosperity.”

A dedicated Task Force has also been constituted to review existing laws and procedures governing economic activity, signalling a comprehensive overhaul of India’s regulatory landscape. These announcements come at a critical juncture, as India faces escalating trade tensions with the United States.

In response to India’s continued import of Russian oil, President Donald Trump has imposed an additional 25 per cent tariff on all Indian goods, effective August 27—on top of the existing 25 per cent duty that took effect earlier this month. Against this backdrop, PM Modi’s reform agenda seeks not only to fortify India’s domestic economy but also to project resilience and adaptability on the global stage.

--IANS

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