Quick Summary
Finance Minister Nirmala Sitharaman on 5th Dec 2025, Friday, said that the Modi government has created history by delivering deep cuts in both direct and indirect taxes within the same financial year, something she said has never happened before in independent India. Addressing lawmakers in the Lok Sabha, the minister stated, "At no point in India's independent history have both direct and indirect taxes been reduced so significantly within a single year." She added that earlier governments had
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FAQ :
It is the first time in independent India's history that both direct and indirect taxes have been significantly reduced within the same financial year.
Under the new tax regime, individuals with an income of up to Rs 12 lakh now have zero tax liability due to an enhanced rebate and higher standard deduction. Tax rates for key middle-income categories have also been lowered.
The GST system has been rationalised from four tax slabs to two (5% and 18%), with most mass consumption items falling into the lower bracket. A higher 40% GST rate is now reserved for luxury and sin goods.
Popular items such as air-conditioners, televisions, small cars, and motorcycles have seen their GST rate slashed from 28% to 18%.
The government aims to increase disposable incomes, support consumption, and simplify India's tax landscape by providing major relief through these income tax and GST reforms.
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