UPA regime unleashed tax terror: Ashwini Vaishnaw hits out at Opposition

Union Minister Ashwini Vaishnaw on Monday launched a sharp attack on the erstwhile Congress-led United Progressive Alliance (UPA) regime, claiming that “no work was done” during its tenure and there was "tax terror", while under Prime Minister Narendra Modi’s leadership, India has witnessed transformative changes in taxation, consumption, and growth.

 

During a press conference at Bharatiya Janata Party (BJP) headquarters in New Delhi, Vaishnaw said the entire nation is celebrating the reforms introduced in recent budgets. “This is a big savings opportunity for every household. From daily-use items to major purchases such as cars, people are experiencing real relief," he said.

 

Speaking to the reporters, Vaishnaw said that from every corner of the country, there is happiness—except for the Opposition, which only knows how to criticise without working.

From ‘tax terror’ to relief

The minister contrasted tax rates under the UPA government with those prevailing today, under the Goods and Services Tax (GST). He argued that the earlier tax system created “tax terror” for ordinary families and businesses.

 

“Under the UPA, cement was taxed at 30 per cent. Today, it is at 18 per cent, giving families the ability to fulfil their dream of owning a home. Sanitary napkins, which attracted 13 per cent earlier, are now tax-free. Footwear came down from 18 per cent to 5 per cent,” Vaishnaw said. 

 

He added that televisions and refrigerators, which are not luxuries but necessities for an aspirational family, were earlier taxed at 30 per cent; this has now been reduced to 18 per cent, he said.

 

He also pointed to essentials: coffee and toothpaste, which attracted 30 per cent earlier, now stand at 5 per cent. Moreover, fertilisers and urea, vital for farmers, dropped from 12 per cent to 5 per cent. “Daily-use items were overburdened with heavy taxes in the UPA era. This government has systematically brought relief,” Vaishnaw added.

Structural changes in GST

Highlighting reforms beyond rate cuts, Vaishnaw said the Modi government had simplified the tax filing system by streamlining input tax credit and removing distortions from the inverted duty structure. Dispute resolution mechanisms have also been modernised to reduce litigation.

 

“From the introduction of GST to reforms, everything has been done methodically. The Modi government has not only reduced rates but has ensured ease of compliance for businesses and consumers,” he said.

Growth and investment outlook

Vaishnaw stressed that reforms are fuelling consumption and investment. He said that India’s gross domestic product (GDP) stands at ₹330 trillion, of which consumption accounts for ₹202 trillion—up 12 per cent from ₹181 trillion last year.

 

“With consumption rising, investment will grow significantly. Last year investment stood at ₹98 trillion; this year, demand-driven growth will push it much higher,” he noted.

 

He added that income tax relief and GST rate cuts will provide significant benefits to the middle class. “Additionally, the zero per cent tax on insurance products will benefit everyone—the middle class, the poor, and farmers alike. This is truly inclusive growth,” Vaishnaw said.