BJP leader Bommai welcomes Modi’s GST reform announcement

Bengaluru, Aug 17 (PTI) BJP MP Basavaraj Bommai on Sunday welcomed Prime Minister Narendra Modi’s announcement on reducing GST rates and simplifying the tax structure, describing it as a "major reform" that would benefit both businesses and consumers.

"PM Modi's announcement about reducing Goods and Services Tax rates and simplifying the tax structure is highly welcome. This step toward tax simplification will, in the coming days, greatly benefit traders and consumers," Bommai said in a statement here.

The former Karnataka chief minister recalled that GST, introduced five years ago as "one nation, one tax," was intended to create a simplified and uniform tax system.

The Haveri MP said that while the reform was introduced with the intention of helping small traders and farmers, feedback over the years from farmers, traders, and businesses highlighted the need for changes.

"Based on this feedback, it was decided to reduce tax slabs and bring down GST rates on some items," he said, noting that under his leadership, a Group of Ministers studied the matter for nearly 18 months before submitting recommendations to the GST Council.

"These included placing several essential commodities under lower slabs and reducing the number of slabs overall. We had presented these suggestions before the Council to ensure benefits for both traders and consumers," he said.

Calling the Centre’s move a "special contribution by Narendra Modi," Bommai noted that the reform was announced ahead of Deepavali and wholeheartedly congratulated the prime minister.

Addressing the nation on the 79th Independence Day, PM Modi said the time had come to reform the Goods and Services Tax (GST) as the indirect tax regime completed eight years.

GST, which subsumed multiple central and state levies, was rolled out on July 1, 2017.

"We have discussed with states and will usher in next-generation GST reforms by Deepavali, which will be a Deepavali gift for citizens. Taxes on common-use items will be substantially reduced, benefiting MSMEs significantly. Daily-use items will become cheaper, which will also strengthen the economy," he said in his speech from the Red Fort. PTI GMS SSK