Guwahati: Prime Minister Narendra Modi addressed the nation on Sunday, unveiling a set of major economic measures aimed at easing the financial burden on the poor, neo-middle class, and middle-income groups.
He described the combination of income tax relief and new GST reforms as a “double bonanza” for ordinary citizens.
During his speech, PM Modi highlighted that individuals earning up to Rs 12 lakh annually will now qualify for income tax exemption, a move expected to bring significant relief to salaried professionals and small business owners.
He also confirmed that the government will roll out next-generation Goods and Services Tax (GST) reforms starting tomorrow, which he called a “GST saving festival.”
This announcement follows Modi’s recent visit to Bhavnagar, Gujarat, where he inaugurated and laid the foundation stone for infrastructure projects worth Rs 34,200 crore.
GST 2.0: Major Structural Reform
Earlier this month, the GST Council, during its 56th meeting, approved a comprehensive restructuring of the eight-year-old indirect tax system.
The Council endorsed a simplified two-tier GST structure of 5% and 18%, with a special 40% rate applied only to sin, luxury, and demerit goods.
The Prime Minister welcomed the Council’s consensus on the Union Government’s proposals, praising the collaborative approach between the Centre and states.
According to the Prime Minister’s Office (PMO), these changes will directly benefit farmers, MSMEs, women, youth, and the wider middle class by streamlining taxation and reducing costs.
H-1B Visa Fee Hike Raises Concerns
Meanwhile, across the globe, a new U.S. policy decision has stirred concern among Indian professionals. U.S. President Donald Trump recently signed a proclamation raising the H-1B visa application fee to $100,000 (approximately Rs 88 lakh).
The White House clarified that the increase is a one-time adjustment and will apply only to new applications in the upcoming lottery cycle.
The visa fee hike comes shortly after the U.S. imposed a 25% penalty on India for purchasing Russian oil, effectively doubling tariffs to 50%.
The timing of these moves is particularly notable, as an Indian trade delegation is scheduled to visit Washington in the coming days to advance discussions on a bilateral trade agreement.