The year 2025 stands as a defining chapter in India’s development journey. It saw policies translate into progress and intent into impact. In the Special Series, ‘Year of Reforms’, Akashvani News brings a report on India’s progress in the Taxation Sector in 2025.
India’s tax history reflects the evolving relationship between the state and its citizens. From the oppressive Salt Tax challenged by Mahatma Gandhi in 1930, to income tax rates touching an extreme 97.5 per cent during the 1970s, excessive taxation fostered distrust, fear-driven compliance and widespread evasion.The tax reforms initiated by the Narendra Modi government over the past eight years, and decisively carried forward in 2025, mark a clear departure from that legacy.
The key pillar of this transition is the next-generation GST reforms. While GST’s introduction in 2017 unified India into a single market, multiple slabs, classification disputes and compliance complexities persisted. This year, the system was rationalised into two main slabs of 5 and 18 per cent, with clearer classifications, easier registration and simplified compliance.
The impact has been visible in consumption and revenue trends. India recorded its highest-ever Diwali sales at over six trillion rupees, strong Navratri demand, and record automobile sales in October. Households are expected to save about two-and-a-half lakh crore rupees annually due to GST cuts and income tax relief. Insurance premiums now attract zero GST, while daily essentials and consumer goods have become more affordable.
Income tax reforms have delivered major middle-class relief, with the exemption limit rising from two lakh rupees in 2014 to 12 lakh rupees this year. This year, tax reforms represent not just fiscal restructuring, but a philosophical shift where trust, simplicity and transparency are driving growth and compliance.
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