GST Reforms: Chief Minister Yogi Adityanath held a press conference in Lucknow on Thursday. In which he said that Modi ji has given this Diwali gift on GST reforms. Which will benefit UP the most.
One Nation One Tax: Chief Minister Yogi Adityanath, while holding a press conference on Thursday, termed the recent GST reforms as a big Diwali gift for the countrymen by Prime Minister Narendra Modi. He said that this decision of the Prime Minister is going to give momentum to the countrymen from inflation and trade. This is not only tax improvement but a gift of Deepawali to simplify the life of every citizen. He said that the benefit of these reforms that provide relief to all even to consumers, farmers, businessmen and common families will start from 22 September, i.e. from the first day of Shardiya Navratri. The Chief Minister thanked Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for this.
Results came up within 20 days of announcement
The Chief Minister said that the results of the tax reform that the Prime Minister had announced on Independence Day came to light in just 20 days. The decisions taken on 3 September in the 56th meeting of the GST Council are now coming into force. He said that this is not just a tax reform, but a comprehensive campaign to give a new height to the country’s economy.
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The biggest reform ever in GST
The Chief Minister said that before the implementation of GST in July 2017, separate taxes were applicable in the country in which complex taxes like VAT, cell tax, service, excise, entry tax and entertainment tax were overshadowed by consumers and businessmen. GST incorporated them and provided forest nation, forest tax to the country. Now the biggest improvement in GST has been made. The first four slabs – 5%, 12%, 18% and 28% were applicable. But now only two slabs – 5% and 18% – are kept. The rates of 12% and 28% have been abolished. 40% tax on some luxury items will remain unchanged. This will provide direct relief to the common consumer. From kitchen to agriculture, house construction to large highways and infrastructure projects, industry and business will benefit.
Big relief to domestic consumers
The Chief Minister said that a general household family will now get direct relief in domestic expenses. Milk, curd, cheese, shampoo, toothpaste, soap, bicycle and children related to children will be charged only 5% or 0%. This will not only reduce everyday expenses but will also increase the purchase capacity of the consumer. He said that when the person can buy more, consumption will increase and the increase in demand in the market will increase production.
GST benefits farmers and rural India
The Chief Minister said that this reform is also historic for the economy of farmers and rural India. Taxes on tractors, tires, pesticides and irrigation equipment have been reduced to 5%. This will reduce the cost of farming and increase production capacity. He said that this step will not only give relief to the farmers but will also strengthen the economy of rural India.
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Insurance and treatment will be cheaper
The Chief Minister said that important decisions have also been taken regarding health services. The GST on personal life and health insurance has been completely terminated. Apart from this, tax has also been reduced on medicines, oxygen and testing kits. This will make the treatment cheaper and will provide relief to every ordinary citizen. The government has also given relief on the purchase and sale of vehicles. Earlier, the car and bike used to levy 28% GST, now it has been reduced to 18%. That is, a direct cut of 10%. The Chief Minister said that this decision will not only increase the ability of the common citizen to buy a car, but will also promote the automobile sector. Production will increase, new employment will generate and the economy will gain momentum.
Education sector also benefits
The Chief Minister said that the tax on notebooks, pencils and other teaching materials has been completely terminated. This decision is a big relief for students and parents. The Chief Minister said that while the government has given exemption to common consumers and students, on the one hand, tax rates on products like tobacco and paan masala have been increased to 40%.
Tax system and transparent
The Chief Minister said that tax registration for Ease of Ease of Doing Business has been auto-up. The process of tax refund has also been intensified. Along with this, risk-based compliance and labor reforms have also been implemented. He said that before GST, the tax collection of the country was only Rs 7 lakh crore, which has now increased to Rs 22.8 lakh crore. The number of tax payers has also increased from 65 lakh to 1.51 crore.
Economy strengthened by tax reform
The Chief Minister said that due to the historic growth of tax collection in the last decade, revolutionary changes have been made in the country’s highways, railways, airports and defense production. The first country before 2014 had only 74 airports, now 160. The metro network increased from 248 km to 1,013 km. The number of Vande Bharat trains has reached 144. Defense production increased from Rs 46,000 crore to Rs 1,27,000 crore. Defense exports increased from 686 crores to Rs 23,600 crore.
Direct benefit to poor welfare schemes
The Chief Minister said that the benefit of tax reforms is also clear in poor welfare schemes. In 2014, there used to be DBT of only Rs 7,000 crore, today direct transfer of Rs 6.83 lakh crore is reaching the poor. 25 crore people have been raised above the poverty line. 4 crore families have got houses from the Pradhan Mantri Awas Yojana. 80 crore people are getting free ration from the Pradhan Mantri Garib Kalyan Ann Yojana.
UP will get the most benefit
The Chief Minister said that being the largest consumer market in the country, Uttar Pradesh will get the most benefit of GST reforms. He said that earlier there was a revenue of only Rs 49,000 crore from VAT and cell tax in UP. After 2017 it increased to Rs 1.15 lakh crore. The shares received from the center are different. Not only this, the expansion of expressway, metro and airport network in the state was also possible due to tax improvement. The Chief Minister said that UP will benefit from especially papperment, footwear, readymade textiles and one District One Product (ODOP) industries. Synthetic menthol has been imposed on 18% tax and only 5% tax on organic menthol, which will promote the farmers and industry of UP.
Employment will be created on a large scale in UP due to increase in demand
The Chief Minister said that Uttar Pradesh has achieved historical achievements in the fields of infrastructure and economic reforms over the years. Since 2017, seven expressways have been built today and work on six is going on. There was no metro in any city before 2017, while today metro is being operated in six cities. Before 2017, only two airports were operational and two partial, while today there are 16 airports operating and the country’s largest airport in Gautam Buddha Nagar will be operational by the end of this year. Handicrafts and artisans have been encouraged under the state’s traditional industries and One District One Product (ODOP) scheme. Now their products will only be charged 5% GST, which will flourish areas like Banarasi saree, Lucknow’s chikankari, Bareilly’s Zardozi, Jalaun’s paper industry and Firozabad’s glass industry. This will not only increase production and demand, but will also create mass employment. The Chief Minister said that through the Merchant Welfare Board, the state government has encouraged registration and also provided a security insurance cover of ₹ 1 lakh to the tax paying traders. So far, insurance amount of more than ₹ 152 crore has been distributed to 1063 families. Along with this, on June 29 every year, traders paying taxes are also honored.