🚨Tax Pain? It Might Just Chill Out Soon!💸
- MediaFx
- 11 hours ago
- 3 min read
TL;DR: PM Modi has announced that as India’s economy gets stronger, the tax burden on ordinary people will continue to ease. With new “GST 2.0” reforms already rolling out and income-tax relief for those earning up to ₹12 lakh, the government is promising more tax cuts ahead. But critics warn: the state coffers and social spending might take a hit unless growth is sustained.
🎯 What Exactly Did Modi Say?
PM Modi, while addressing a trade show in Uttar Pradesh, said the tax burden will “reduce further” as India’s economy strengthens. He pledged that the government won’t stop with just the recent measures — more GST reforms are in the pipeline.
He pointed to two flagship changes already made:
No income tax up to ₹12 lakh (i.e. people earning ₹12 lakh annually are exempt)
The launch of GST 2.0, a revamped structure for goods & services tax intended to simplify slabs and lower rates for many items.
Modi also tied this to a push for self-reliance (“Make in India”) and urged more domestic manufacturing and innovation.
📊 The Numbers & Mechanics
GST 2.0 was formally introduced on 22 September 2025.
This reform collapses tax slabs and makes many essentials cheaper, directly benefiting consumers.
The government claims that combining income-tax relief and GST cuts will lead to total savings of about ₹2.5 lakh crore for citizens.
But there's a cost: lower rates mean potential revenue loss, so the government is balancing by reworking slabs, narrowing exemptions, and hoping increased economic activity will fill the gap.
✅ Pros & ❗ Cons (From the People’s Lens)
Upside | Risk / Critique |
More take-home income, especially for lower & middle classes | Lower government revenue — could hurt spending on health, education, welfare |
Boost to demand and consumption, spurring growth | If growth weakens, tax cuts may backfire and widen deficit |
Simplification of tax rules & fewer slabs = easier compliance | Critics doubt if tax relief alone can drive sustainable growth |
Strong incentive for “Make in India” and local manufacturing | Cuts might favor consumption over investment and infrastructure |
From the working-class perspective, this is a kind of “relief campaign” — the government is trying to lighten the burden of taxes so that people can breathe a little easier. But it has to be matched with job creation, wage increases, and strong public services, or else the poorest will still struggle.
🧠 Big Picture & What’s Next
Sustainability is key. If growth continues at decent rates, the lower-tax regime might be maintained. If not, the government may have to roll back or reduce welfare.
States’ finances matter. Because many taxes are shared or indirect, states may feel the pinch. Their ability to fund social programmes will be tested.
Public expectations will rise. Once people expect lighter taxes, they will demand better public services. The government will have to deliver.
Global uncertainties like inflation or trade shocks could derail the plan.
MediaFx’s Take (People’s Perspective)This is not just a tax reform — it's a political and economic gamble. It’s being pitched as relief for the masses, especially those struggling with inflation and high living costs. But the real test will be whether growth, jobs, and welfare follow. If this remains a cosmetic cut without strengthening public goods and equality, then the benefits may be shallow. The burden might just shift elsewhere.
