Congress Era Brought Heavy Taxes,Loot: Modi

New Delhi:Prime Minister Narendra Modi on Thursday lashed out at the Congress and other Opposition parties for misleading people on GST rate cuts and countered their narrative by citing examples of reduced prices of items ranging from toothpaste to tractors. Modi also asserted that during Congress-led governments, there was "tax loot" and people were burdened with heavy taxes.

Speaking after inaugurating the UP International Trade Show (UPITS) in Greater Noida, the Prime Minister said that India stands firmly with its industries, traders, and citizens, driven by the commitment to “Reform, Perform and Transform”.

The Prime Minister stated that just three days ago, next-generation GST reforms were implemented and described them as "structural changes that will propel India’s growth story".

“These reforms will simplify GST registration, reduce tax disputes, and accelerate refunds for MSMEs, benefiting every sector,” Modi said.

The Prime Minister noted that stakeholders have experienced three distinct phases—pre-GST, post-GST and now the next-generation GST reforms—and emphasised the significant difference they have made. He illustrated this with examples, stating that 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.

Elaborating further, the Prime Minister illustrated the tangible benefits of GST reforms with a relatable example and noted that in 2014, spending `100 on essentials like toothpaste, shampoo, hair oil and shaving cream incurred `31 in taxes, making the 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 said.

The Prime Minister emphasised that this reflects significant 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 just five per cent GST,” he said.

Emphasising the pivotal role of tractors in India’s rural economy, the Prime Minister noted that prior to 2014, purchasing a tractor incurred over `70,000 in taxes. Today, the same tractor attracts only `30,000 in tax, resulting in a direct saving of more than `40,000 for farmers.

Modi said that these savings benefit the poor, the neo-middle class and the middle class alike and cautioned that despite these, certain political parties are attempting to mislead the public.

"The Congress and its allies, who were running the government before 2014, are lying to the public to hide the failures of their government. The truth is that during the Congress governments, there was rampant looting through taxes, and even the looted money was being looted further. The common citizens of the country were suffering due to the burden of taxes," he said.

The Prime Minister stated that India today possesses strong willpower for reforms, backed by democratic and political stability, along with policy predictability. He asserted that investing in India, and in Uttar Pradesh in particular, is a win-win situation.

Underlining that India is advancing toward its goal of becoming a developed nation by 2047, the Prime Minister said, “Despite global disruptions and uncertainty, India’s growth remains attractive.” He added that disruptions do not divert India—they reveal new directions and amidst these challenges, India is laying a strong foundation for the coming decades.

Reiterating that the nation’s resolve and guiding mantra is "Aatmanirbhar Bharat", Modi asserted that there is no greater helplessness than dependence on others. “In a changing world, the more a country relies on others, the more its growth is compromised. India must become self-reliant. Every product that can be made in India must be produced in India,” stressed the Prime Minister.