Union Finance Minister Nirmala Sitharaman has outlined the anticipated economic effects of Goods and Services Tax (GST) reforms scheduled to take effect from September 22.
According to the minister, these reforms are projected to release ₹2 lakh crore into the hands of the public, an initiative expected to stimulate domestic consumption. Sitharaman indicated that the objective, as emphasized by Prime Minister Narendra Modi, is for these changes to primarily benefit poor and middle-class families, alongside micro, small, and medium enterprises (MSMEs).
She further elaborated that increased public spending is anticipated to drive higher demand. To support the perceived success of GST, the Finance Minister cited an expansion in the number of tax-paying entrepreneurs from 65 lakh before GST’s 2017 implementation to 1.5 crore over the past eight years, an increase she presented as a refutation of criticisms regarding the tax system’s impact.
Source: www.thehindu.com