“Congress Taxed Children’s Toffees”, Modi Slams Earlier Regime
Prime Minister Narendra Modi justified India’s recent GST reform by sharply criticising the previous Congress government, saying it imposed taxes on essentials—including “21% tax on children’s toffees.”
Heavy Tax Burden Under Congress Rule
Modi said that during the Congress years, everyday items such as toothpaste, soap, hair oil were taxed at 27%. He cited other items, including food plates, kitchen utensils, and spoons, taxed between 18% and 28%. He also mentioned that bicycles faced a 17% tax and sewing machines had a 16% levy. Building materials, like cement, were taxed at 29%, and hotel rooms at 14%.
GST Rationalisation Aimed to Ease Costs
Highlighting the new GST reforms that come into effect from 22 September (Navratri), Modi said the tax structure has been simplified from four slabs to two—5% and 18%. He noted that many essentials, including life-saving drugs, food items, and insurance, have been made tax-free or placed under lower rates.
Reform Hailed as Major Economic Relief
Modi described the reforms as a “double dose of support and growth,” saying they will improve citizens’ quality of life, enhance consumption, boost investments, strengthen employment, and simplify doing business. He characterized the move as the “biggest reform of independent India,” one that will bring economic benefits starting from Navratri and Diwali.
