On India’s 79th Independence Day, Prime Minister Narendra Modi made a powerful promise to citizens—this Diwali will be more than just a festival of lights. He declared it a “Double Diwali”, heralding transformative tax reforms in the form of next-generation Goods and Services Tax (GST) changes that aim to substantially ease the tax burden across the nation.

Speaking from the Red Fort, Modi emphasized the significance of the reforms, stating, “This Diwali, I am going to make it a double Diwali for you… We are bringing next-generation GST reforms that will reduce the tax burden across the country.”

The upcoming reforms follow a review of GST, first implemented in 2017, and reflect a concerted effort to reconfigure tax slabs with a sharper focus on affordability for common citizens. Sources say the government may eliminate the 12% slab, redistributing those goods to the 5% or 18% brackets—a move expected to reduce taxes on everyday items and bolster the economy.

Officials are optimistic these reforms will bring substantial relief to households and MSMEs. While revenue loss is possible, analysts argue increased consumption and simplified compliance could compensate for the shortfall.

As the “Double Diwali” promise sets raised expectations for Diwali 2025, citizens and businesses alike await further details on the reform’s rollout and its impact on daily life.