Mangaluru: Dakshina Kannada MP Brijesh Chowta has welcomed the Union government’s decision to revamp the Goods and Services Tax (GST) slabs, calling it a “historic step” that will ease the financial burden on poor and middle-class families.

Addressing a press conference at the BJP office in Mangaluru, Chowta said the decision—finalised at the 56th GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman—fulfils Prime Minister Narendra Modi’s Independence Day assurance of reducing tax pressure on common citizens.

Tax slabs simplified

Chowta explained that the earlier four-slab GST system of 5%, 12%, 18%, and 28% has now been simplified. Under the new structure, the 12% and 28% slabs have been scrapped, with essential goods and many household items now taxed at just 5%.

“Indirect taxes that burdened people earlier are now streamlined into a single, uniform structure. For example, GST on TVs and home appliances has been reduced from 18% to 5%,” he said.

Relief in key sectors

The MP highlighted that the health sector has seen major cuts, with life-saving medicines, medical equipment, and many essential drugs moved to the zero-tax bracket. Similarly, GST on milk and food by-products has been reduced, and taxes on life and personal insurance have been scrapped.

“These measures will provide a big financial cushion to ordinary families, encourage more people to opt for insurance, and reduce household expenses,” Chowta noted.

Benefits for rural economy

Chowta said the new tax structure would not only bring relief to urban households but also stimulate rural growth. “This will encourage farmers and boost agricultural activities. The government has also reduced taxes in the education sector so that learning does not become a burden for poor families,” he added.

Consensus across political lines

Interestingly, Chowta pointed out that even finance ministers from Congress-ruled states supported the GST reforms. “This shows that everyone has put aside political interests and stood united in taking a decision that benefits the nation,” he said.

Implementation from Navratri

The reforms will come into effect on September 22, coinciding with the start of Navratri. Chowta assured that people will begin experiencing the benefits gradually.

When asked if tax cuts would strain state revenues, Chowta dismissed the concern as “speculation,” asserting that the move would instead spur economic activity and consumption, offsetting any initial revenue dip.

Local leaders including CA Shantaram Shetty, Premanand Shetty, and Vasant Poojary were present at the press briefing.