PM Modi to address nation at 5pm on Sunday
What's the story
Prime Minister Narendra Modi will address the nation on Sunday, September 21, at 5:00pm. The announcement comes a day before major Goods and Services Tax (GST) reforms take effect. Under the new GST regime, announced by Finance Minister Nirmala Sitharaman, tax rates will be slashed on several products to boost consumer demand and reduce prices.
Tax overhaul
New GST structure will have only 2 slabs
The new GST structure will have only two slabs: 5% and 18%. This is a major change from the current four-slab system of 5%, 12%, 18%, and 28%. The government hopes that this simplification will make goods more affordable, especially for the middle class, and boost consumer spending during the festive season.
Tax transition
Most goods in the current 12% and 28% slab
Under the new regime, almost all goods under the 12% slab will be taxed at 5%, while most items in the 28% category will now attract an 18% tax. Luxury items will be taxed at a higher rate of 40%. The government hopes these changes will provide relief to consumers and boost spending during Navratri festivities.
Global context
PM's address comes after recent tensions with US
PM Modi's address comes after recent tensions with the United States over H-1B visa fee hikes. The Ministry of External Affairs has expressed concerns over potential humanitarian consequences due to the fee increase. The last time PM Modi addressed the nation was after India and Pakistan reached a "bilateral understanding" following a conflict in May this year.