India's Tax Reforms to Save Citizens Rs 2.5 Lakh Crore Annually
The Indian government has implemented significant tax reforms, leading to a substantial reduction in overall taxes and inflation. These changes, effective from 2025, are set to benefit the poor and middle class significantly. The Goods and Services Tax (GST) reforms are expected to save citizens Rs 2.5 lakh crore annually.
The government has simplified the tax landscape by removing over 40,000 compliances and decriminalising hundreds of minor business offences. Prime Minister Narendra Modi has reassured citizens that GST reforms will continue, with the country currently celebrating a 'GST Bachat Utsav' to mark the occasion.
One of the key changes includes increasing the tax-free income limit to Rs 12 lakh. This, coupled with the reduction in tax rates and inflation, is set to boost incomes and savings for a large section of the population. As India's economy grows, the tax burden on citizens is expected to decrease gradually.
The government's tax reforms are poised to bring significant relief to citizens, with an estimated Rs 2.5 lakh crore in savings annually. The changes, including the increase in the tax-free income limit and the simplification of tax compliances, are expected to boost incomes and savings. Prime Minister Modi has encouraged traders and entrepreneurs to adopt a 'swadeshi first' approach, reflecting a shift towards indigenous products.
