Key Points

According to the BMS statement, the new system introduces a simplified two-rate GST model aimed at easing the tax burden on the general population while shifting greater responsibility towards luxury goods consumed by high-income groups.

“Traditionally, the indirect tax regime was heavily reliant on taxing the day-to-day needs of the citizens. This trend has now been reversed through these next-gen reforms,” BMS said.

The reforms include a reduction of GST rates on labour-intensive industries and essential consumer goods such as cement, food items, healthcare products, insurance policies, educational materials, and agricultural machinery.

Items widely used by the middle class—like automobiles and electronic appliances—also see lowered rates, which BMS says will ease household expenses.

General Secretary Ravindra Himte emphasised that the move would particularly benefit workers and lower-income families. “We hope manufacturers, insurance companies and others will promptly pass on these benefits to the common man by lowering the prices of essential daily-use products,” he added.

The statement underlined that the reforms reflect a long-standing demand of trade unions and civil society for a rational, progressive tax system.

By reducing indirect taxation on necessities and boosting the affordability of key products, BMS believes the reforms will support industrial growth, generate employment, and improve the purchasing power of ordinary citizens.

BMS also said that the next-gen GST model would strengthen economic justice by lightening the load on workers while ensuring that the affluent contribute more equitably to national revenue.

- IANS