Taxes have come down significantly during NDA rule: PM Modi

Highlighting the far-reaching impact of the government’s reduction in GST rates, Prime Minister Narendra Modi underscored that farmers had to shell out more than ₹70,000 in taxes when buying a tractor—more than double the ₹30,000 they do today—a decade ago, when the UPA coalition was in power.

Speaking at the Uttar Pradesh International Trade Show at Greater Noida, the Prime Minister also highlighted other instances of tangible benefits from significantly reduced taxes. “Three-wheelers, a major source of employment for the poor, previously attracted ₹55,000 in tax, which has now been reduced to ₹35,000, yielding a ₹20,000 saving. Similarly, due to lower GST rates, scooters are now ₹8,000 cheaper and motorcycles ₹9,000 cheaper compared to 2014. These savings benefit the poor, the neo-middle class, and the middle class alike,” he explained.

The Prime Minister also illustrated the benefits of the revamped GST tax structure with a relatable example. In 2014, spending ₹100 on essentials like toothpaste, shampoo, hair oil, and shaving cream resulted in ₹31 in taxes, making the total bill ₹131. “After the introduction of GST in 2017, the same ₹100 worth of goods cost ₹118, resulting in a direct saving of ₹13. With the latest generation of GST reforms, this cost has further reduced to ₹105, yielding a total saving of ₹26 compared to pre-2014 rates,” he averred.

PM Modi highlighted that this results in considerable monthly savings for ordinary families. He explained that a household spending ₹1 lakh annually on necessities in 2014 would have paid ₹20,000–₹25,000 in taxes. Today, under the new GST regime, the same family pays only ₹5,000–₹6,000 annually, as most essential items now attract a GST rate of just 5%.

These examples were provided by the Prime Minister to illustrate that stakeholders have experienced three distinct phases: pre-GST, post-GST, and now the next-generation GST reforms. “Before 2014, the multitude of taxes made it difficult to manage both business costs and household budgets. A shirt priced at ₹1,000 attracted nearly ₹170 in taxes before 2014. After the introduction of GST in 2017, this dropped to ₹50. With the revised rates effective from September 22, the same ₹1,000 shirt now incurs only ₹35 in tax,” he said.

Underscoring the government’s strong focus on ‘Make in India’ and boosting domestic manufacturing, the Prime Minister reiterated the vision to produce everything from chips to ships within the country. “To support this, the government is continuously working to enhance Ease of Doing Business,” the PM said.

PM Modi inaugurated the Uttar Pradesh International Trade Show on Thursday, scheduled from September 25th to 29th, with the theme “Ultimate Sourcing Begins Here”. The event focuses on three main goals: innovation, integration, and internationalisation. It will implement a three-pronged buyer strategy targeting international buyers, domestic business-to-business (B2B) buyers, and domestic business-to-consumer (B2C) buyers, creating opportunities for exporters, small businesses, and consumers.