Visakhapatnam: Union Finance Minister Nirmala Sitharaman on Wednesday said that the 'Next Gen GST' reforms have boosted the economy by Rs 2 lakh crore. This has left more cash with people, which would otherwise have gone towards taxes.
Addressing a programme on the 'Next Gen GST' reforms, she also said that after these tax rate revisions, 99 per cent of the items falling under the 12 per cent GST slab have moved to the 5 per cent slab. With this change, 90 per cent of the items falling under the 28 per cent tax slab have come under the 18 per cent bracket.
She said, "With this new generation tax system, which has only two slabs (5 per cent and 18 per cent), the economy has grown by Rs 2 lakh crore. People will have cash savings.’’
The Finance Minister said that GST revenue has increased from Rs 7.19 lakh crore at the beginning to Rs 22.08 lakh crore in 2025. According to him, the number of taxpayers has increased from 65 lakh to 1.51 crore.