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Tamil Nadu Chief Minister MK Stalin on Tuesday, September 23, came down heavily at Prime Minister Narendra Modi over his remarks that Indians would save Rs 2.5 lakh crore through Goods and Services Tax (GST) reforms and income tax relief.
“This is exactly what the Opposition has been demanding from the very beginning. If these measures had been taken eight years ago, families across the country would already have saved many lakh crores more,” Stalin said in a statement.
The Dravida Munnetra Kazhagam (DMK) president argued that half of the relief being projected by the Union government was in fact borne by state governments. “It is our duty to point out that 50% of this relief has actually been borne by the State governments, a fact which the Union has failed to acknowledge as well as appreciate,” he said.
Accusing the Bharatiya Janata Party (BJP)-led Union government of withholding state funds, Stalin alleged, “Tamil Nadu was being denied Samagra Shiksha funds only because we refuse to accept Hindi imposition. When will this injustice end?”
The Chief Minister further said that India cannot grow by punishing states that defend their rights and stand for their people. “Respect federalism, release the funds, and let the people benefit from what is rightfully theirs,” he added.
The BJP government had earlier announced GST rate cuts on September 4, covering a wide range of products, from automobiles to daily consumer items. Under the new framework, often referred to as GST 2.0, a two-slab structure of 5% and 18% will apply, with an additional 40% rate only for super luxury, sin, and demerit goods.
This marks the biggest indirect tax reform since the GST was rolled out in July 2017. The reforms were cleared by the GST Council at its 56th meeting, where both the Union and state governments reached a consensus.