President Droupadi Murmu during her address on the first day of Parliament's Budget session said the government is moving on the path of 'Reforms Express'
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NEW DELHI — President Droupadi Murmu on Wednesday said the government is moving on the path of 'Reforms Express', benefitting the poor and middle class, and the historic next-gen GST reform rolled out last year has ensured savings of INR 1 lakh crore for citizens.
In her address to both Houses of Parliament, Murmu also said the government has revamped the Income Tax law and taken a "historic decision" to exempt income of up to INR 12 lakh from taxation.
"These reforms are providing unprecedented benefits to poor and middle-class families. It has also given a new impetus to the country's economy," Murmu said.
The new and simplified Income Tax Act 2025 has been enacted and will be implemented from April 1, 2026.
In the 2025-26 Budget presented on February 1, last year, the government had increased the income tax exemption threshold to INR 12 lakh from INR 7 lakh earlier.
"Today, my government is moving forward on the path of 'Reforms Express'. Old rules and provisions are being updated continuously according to future needs," Murmu said.
Talking about the GST 2.0 reform, under which tax rates of about 375 goods were slashed effective September 22, 2025, Murmu said the historic next-generation reform filled the citizens with enthusiasm.
"This reform ensured savings of one lakh crore rupees for citizens. Following the reduction in GST, in 2025, registrations of two-wheelers have crossed the mark of two crore, which is a new record in itself," Murmu said.
Effective September 22, 2025, Goods and Services Tax (GST) has adopted a two-tier structure, with the majority of goods and services attracting a 5 per cent tax and 18 per cent tax. A 40 per cent tax is levied on ultra-luxury items and tobacco and related products.
At the time of its launch on July 1, 2017, GST was a 4-slab structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent. Besides, a compensation cess was levied on luxury items and demerit or sin goods.
About 99 per cent of goods under the 12 per cent GST slab have been moved to the 5 per cent slab. The rejig also resulted in 90 per cent of items under the 28 per cent tax slab being brought down to the 18 per cent bracket post the GST 2.0 reform.