GST reforms boost purchasing power: Dinakar

Vijayawada: Twenty Points Programme Implementation chairman Lanka Dinakar said the GST reforms introduced by the Central Government will enhance the purchasing power of people and positively impact the economy. He addressed a seminar on GST reforms organised at the Chartered Accountant Bhavan here on Tuesday. Dinakar explained that, based on the 56th GST Council’s decision, the slabs have been rationalised from four (5%, 12%, 18%, 28%) to two—5% and 18%—effective from September 22. He thanked Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for the initiative and appreciated Chief Minister N Chandrababu Naidu for supporting the reforms through a resolution in the State Assembly.

He said the reforms would reduce daily expenditure, increase savings, and make essential goods and services more affordable. Food items, medicines, textbooks, and agricultural inputs are placed in the 0% or 5% categories, while GST on tractors and cement was reduced from 28% to 18%. Vehicles below 1500 CC would also become cheaper. Dinakar noted that nearly 90% of households would benefit directly. He stressed the importance of awareness campaigns through chartered accountants, chambers of commerce and voluntary organisations to ensure that the benefits reach the common man. He also highlighted that welfare schemes, including freerice to 80 crore people and subsidies under PMAY and PM Kisan, were possible due to robust tax mobilisation.