New Delhi [India], September 25 (ANI): Prime Minister Narendra Modi took a sharp dig at the previous Congress-led government’s tax regime, contrasting it with the benefits brought by the new Goods and Services Tax (GST) reforms, using an example of a daily essential like a shirt, a pair of shoes and a toothpaste in today’s visit to Uttar Pradesh and later in Rajasthan.
Addressing the gathering after inaugurating multiple developmental projects in Rajasthan, the Prime Minister emphasised how the post-GST era has significantly reduced costs for common citizens, highlighting savings on essential items, footwear, and even motorcycles.
PM Modi began by illustrating the steep taxes imposed before 2014 on daily essentials, such as soap, shampoo, toothpaste, and toothpowder.
“Before 2014, spending Rs 100 on daily essentials like soap, shampoo, toothpaste, and tooth powder resulted in a total cost of Rs 131 due to high taxation under the opposition government. The opposition levied Rs 31 tax on every Rs 100 purchase,” PM Modi said.
With the introduction of GST in 2017, the prime minister explained, the same Rs 100 worth of goods now costs Rs 118, saving consumers Rs 18. Following the recent reforms introduced on September 22, the price of the same goods had further dropped to Rs 105, leading to a total saving of Rs 26 compared to the previous dispensation.
The Prime Minister also highlighted the impact of these changes on families. “Mothers and sisters meticulously manage household budgets, and under the new tax regime, families are now saving hundreds of rupees every month,” he stated.
PM Modi then focused on footwear, stressing that it is a basic necessity for everyone.
“Under the previous dispensation’s rule, purchasing a Rs 500 shoe cost Rs 575 due to a Rs 75 tax burden. With the implementation of GST, this tax was reduced by Rs 15. Following the latest GST reforms, the same shoe now costs Rs 50 less,” PM Modi pointed out.
The Prime Minister noted that even shoes priced above Rs 500 were subjected to higher taxes, but the new tax rates on footwear up to Rs 2,500 have made them more affordable.
Turning to larger aspirations, PM Modi discussed the cost of owning a motorcycle, a common dream for many families.
“Under the opposition rule, even a Rs 60,000 motorcycle was out of reach for most due to over Rs 19,000 in taxes. With the introduction of GST in 2017, this tax was reduced by Rs 2,500. Following the revised rates on September 22, the same motorcycle now attracts only Rs 10,000 in tax, resulting in a direct benefit of Rs 9,000 compared to 2014,” he said.
PM Modi also addressed the high cost of building materials like cement, which he said had been a burden for homebuilders.
“Under the previous dispensation, a Rs 300 cement bag attracted over Rs 90 in taxes. With GST in 2017, this was reduced by Rs 10. Following the latest reforms, the same cement bag now incurs only Rs 50 in tax, saving Rs 40 compared to 2014,” he explained.
He went on to highlight that the previous government’s excessive taxation had made governance burdensome, whereas his government had brought savings to the citizens.
During his address, PM Modi also stressed the importance of self-reliance under the GST Savings Festival. He encouraged citizens to adopt the mantra of “swadeshi” in their purchasing habits.
“What we sell should be swadeshi, and what we buy must also be swadeshi,” he urged.
He explained that buying swadeshi products helps local artisans, workers, and traders, and the money stays within the country, contributing directly to national development.
PM Modi appealed to citizens to pledge to buy “swadeshi goods” during the festive season. He congratulated them on the launch of development and employment-linked projects, reiterating that swadeshi products should be a symbol of national pride.
In Rajasthan, PM Modi laid the foundation stone and inaugurated multiple development projects worth over Rs 1,22,100 crore, jointly undertaken by the central and state governments, at Banswara in Rajasthan.
He also flagged off three trains: Vande Bharat Express Train between Bikaner and Delhi Cantt, Vande Bharat Express Train between Jodhpur and Delhi Cantt, and Udaipur City – Chandigarh Express.
Earlier in the day in Uttar Pradesh, PM Modi inaugurated the Uttar Pradesh International Trade Show-2025.
Addressing a gathering here, the Prime Minister stated that India is strengthening its position and will no longer accept being dependent on other nations for its own development.
Affirming that India stands firmly with its industries, traders, and citizens, driven by the commitment to Reform, Perform, and Transform, PM Modi highlighted that just three days ago, next-generation GST reforms were implemented, describing them as ‘structural changes that will propel India’s growth story’.
These reforms will simplify GST registration, reduce tax disputes, and accelerate refunds for MSMEs, benefiting every sector.
The Prime Minister noted that stakeholders have experienced three distinct phases–pre-GST, post-GST, and now the next-generation GST reforms–and emphasised the significant difference they have made.
He illustrated this with examples, stating that before 2014, the multitude of taxes made it difficult to manage both business costs and household budgets. “A shirt priced at Rs 1,000 attracted nearly Rs 170 in taxes before 2014. After the introduction of GST in 2017, this dropped to Rs 50. With the revised rates effective from September 22, the same Rs 1,000 shirt now incurs only Rs 35 in tax,” he said.
Elaborating further, the Prime Minister provided a relatable example to illustrate the tangible benefits of GST reforms.
He noted that in 2014, spending Rs 100 on essentials like toothpaste, shampoo, hair oil, and shaving cream resulted in Rs 31 in taxes, making the total bill Rs 131. “After the introduction of GST in 2017, the same Rs 100 worth of goods cost Rs 118, resulting in a direct saving of Rs 13. With the latest generation of GST reforms, this cost has further reduced to Rs 105, yielding a total saving of Rs 26 compared to pre-2014 rates,” PM Modi said.
PM Modi emphasised that this reflects significant monthly savings for ordinary families.
He explained that a household spending Rs 1 lakh annually on necessities in 2014 would have paid Rs 20,000-Rs25,000 in taxes. Today, under the new GST regime, the same family pays only Rs 5,000-Rs 6,000 annually, as most essential items now attract just 5 per cent GST.
Emphasising the pivotal role of tractors in India’s rural economy, the Prime Minister noted that prior to 2014, purchasing a tractor incurred over Rs 70,000 in taxes. Today, the same tractor attracts only Rs 30,000 in tax, resulting in a direct saving of more than Rs 40,000 for farmers.
He highlighted that three-wheelers, a major source of employment for the poor, previously attracted Rs 55,000 in tax, which has now been reduced to Rs 35,000, yielding a Rs 20,000 saving. Similarly, due to lower GST rates, scooters are now Rs 8,000 cheaper and motorcycles Rs 9,000 cheaper compared to 2014.
PM Modi noted that these savings benefit the poor, the new middle class, and the middle class alike. Despite this, he cautioned that certain political parties are attempting to mislead the public.
He criticised the opposition parties for spreading falsehoods to cover up their own governance failures, asserting that during their tenure, excessive taxation burdened ordinary citizens.
The Prime Minister stated that his government has significantly reduced taxes, curbed inflation, and increased both income and savings for the people. He noted that by making income up to Rs 12 lakh tax-free and implementing new GST reforms, citizens are set to save Rs 2.5 lakh crore this year alone.
He declared that the nation is celebrating the GST Savings Festival and affirmed that, with public support, the momentum of GST reforms will continue unabated.
The Prime Minister stated that India today possesses strong willpower for reforms, backed by democratic and political stability, along with policy predictability.
He emphasised that India has a vast, skilled workforce and a dynamic young consumer base–an unmatched combination not found together in any other region globally.
PM Modi remarked that for any investor or company seeking to elevate their growth, investing in India presents the most attractive opportunity. He asserted that investing in India, and in Uttar Pradesh in particular, is a win-win situation.
The Prime Minister concluded by affirming that through collective efforts, a developed India and a developed Uttar Pradesh will be realised. He extended his best wishes to all participants of the International Trade Show. (ANI)
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