Former BJP minister hails GST reform as ‘new generation tax’

Senior BJP leader and former minister Govind Singh Thakur has welcomed the Central Government’s proposed reforms to the Goods and Services Tax (GST), describing them as a landmark step that will bring major relief to the common man and stimulate the Indian economy.

Addressing a press conference today, Thakur said the plan to simplify the GST structure by eliminating the 12% and 28% slabs while retaining only 5% and 18% rates demonstrates Prime Minister Narendra Modi’s commitment to public welfare and economic modernisation.

He explained that many daily-use items earlier taxed at 12% — including toothpaste, soap, cooking oil, medicines, snacks, utensils, sewing machines and farm tools —would now fall under the 5% slab, making them more affordable for households. Likewise, 90% of items from the 28% category will shift to 18%, cutting the prices of cement, televisions, refrigerators, washing machines, cosmetics and ready-mix concrete by nearly 10%.

Thakur stressed that the reforms will particularly benefit farmers and small industries. “Lower taxes on agricultural machinery, solar water heaters and public transport vehicles will reduce costs for farmers and enhance incomes,” he said. He added that the MSME sector, considered the backbone of India’s economy, would gain competitiveness through cheaper raw materials and equipment, creating more jobs and strengthening initiatives like Make in India and Atmanirbhar Bharat.

Calling the reform a “new generation tax”, Thakur said the simplified structure would increase transparency, improve ease of doing business and help control inflation. Quoting a State Bank of India report, he noted the changes could add nearly Rs 1.98 lakh crore in additional consumption, boosting demand and energising markets.

He further praised the proposal to impose a 40% GST on luxury items such as private jets, luxury cars and high-end goods, saying it reflects social justice by ensuring the wealthy contribute to national development.

In a separate note, Thakur appreciated the Manali Bikers Association for donating Rs 1 lakh towards flood relief in Lug Valley, Kullu. Highlighting the plight of villagers stranded due to damaged roads and rotting produce, he urged wider public support and criticized the government’s slow response.