Prime Minister Narendra Modi has completed 11 years in office, serving as India’s Prime Minister from May 26, 2014, to May 26, 2025.
If he wins the 2029 Lok Sabha elections and completes the following term, he could become India’s longest-serving Prime Minister, surpassing Jawaharlal Nehru, who held the post for 17 years (1947–1964).
During Modi’s tenure (2014–2025), several significant tax reforms have been implemented, including the introduction of GST, changes in income tax laws, and a new tax regime introduced in Budget 2025.
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Narendra Modi took oath as Prime Minister on May 26, 2014, and completed 11 years in office on May 26, 2025. If he wins the 2029 elections and serves a full term, he will overtake Jawaharlal Nehru’s record as the longest-serving PM in India’s history. This depends on future events, but the possibility appears strong, especially since he has already won the 2024 elections (held in April–May 2024).
On November 8, 2016, the government banned Rs. 500 and Rs. 1000 currency notes to target black money and bring more transparency to the economy. This indirectly improved tax compliance by increasing formal banking transactions.
Implemented on July 1, 2017, GST replaced a complex structure of state and central indirect taxes (like VAT, service tax, and excise duty) with a single unified tax system. It aimed to create a common national market and ease doing business. Though early compliance was challenging for small businesses, later improvements, such as digital filing and rationalised rates, helped streamline the system.
Starting April 1, 2021, the government launched the Faceless Assessment Scheme to reduce human intervention, corruption, and delays in tax proceedings. Taxpayers can now file returns, appeals, and receive refunds with more transparency and efficiency.
This initiative was designed to simplify compliance and reward honest taxpayers. It included features like faceless appeals, prompt refunds, and a Taxpayer Charter guaranteeing rights.
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In the Union Budget 2025–26, presented on February 1, 2025, several landmark changes were proposed:
One of the most defining features of Modi’s tax policy has been the digitization of tax administration. From GSTN, e-filing portals, and real-time data sharing to faceless assessments and appeals, the government has leveraged technology to reduce human discretion, enhance transparency, and tackle evasion. Pre-filled returns, integrated dashboards, and online refund processing have simplified tax compliance for millions of taxpayers.
The emphasis on digitization is not only improving efficiency but is also fostering trust in the system, critical for widening the tax base in a country where only 1.6% of the population pays income tax.
The government’s reforms have significantly improved tax collections, with gross direct taxes reaching Rs. 27 lakh crore in FY25 and GST revenues growing at an average of 13% annually. These trends indicate not just stronger compliance but also a formalizing economy. Importantly, the shift toward a higher proportion of direct taxes (now nearly 60% of total collections) signals a move toward a more progressive tax structure.
Despite successes, challenges remain. The complexity of GST, frequent rule changes, lack of GST tribunals, and the ongoing old vs. new tax regime debate indicate that India’s tax system, while modernizing, still requires refinement. MSMEs continue to bear disproportionate compliance burdens, and litigation in both direct and indirect taxes remains high.
The decline in net FDI, despite liberal policies and tax cuts, suggests that tax reform alone isn’t enough; broader economic factors and ease of doing business also play critical roles
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In 11 years, the Modi government has implemented India’s most ambitious tax reforms since Independence. As India aims to become a $5 trillion economy, continued efforts are needed to simplify the tax code, reduce litigation, support small businesses, and harmonize tax regimes. With the New Income Tax Bill on the horizon and further rationalization of GST expected, the next phase of reforms could solidify India’s position as a competitive, business-friendly global economy.
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