September 4, 2025 — Prime Minister Narendra Modi has sharply criticised the Congress party following the latest round of Goods and Services Tax (GST) changes, accusing it of having imposed excessively high indirect taxes on ordinary items during its rule. Speaking at a rally in Madhya Pradesh on Wednesday, Modi claimed that under earlier regimes children’s toffees were taxed at a rate of 21 per cent, a remark that immediately drew reactions from both political opponents and economic experts.
The Prime Minister’s comments came a day after the GST Council announced revisions to tax rates on a range of products. While several household items and essential goods witnessed reductions, confectionery items, including chocolates and toffees, continue to fall under the 18 per cent GST bracket. Before GST was introduced in 2017, indirect taxation on such items varied across states, with cumulative levies often exceeding 20 per cent when excise and sales tax were combined. Modi argued that this system unfairly burdened ordinary families and said that the current government had worked to make taxation more predictable and transparent.
Congress leaders quickly dismissed the allegations, calling the Prime Minister’s remarks misleading. Party spokesperson Supriya Shrinate said there was no uniform 21 per cent levy on toffees or other basic products and accused the government of exaggerating past figures for political gain. Economists also pointed out that pre-GST rates differed from state to state and that while some categories did attract higher combined taxes, they were not implemented as a single nationwide rate.
Industry representatives, meanwhile, noted that while GST has helped standardise taxation, the existing 18 per cent rate on confectionery remains a challenge for small and medium-sized businesses. Several manufacturers have called for further relief, arguing that high tax rates limit consumer demand and place strain on smaller producers competing with larger companies.
The timing of Modi’s remarks is being viewed in the context of upcoming state elections, with political analysts suggesting that the reference to toffees was meant to make the issue of taxation relatable to ordinary voters. By linking economic policy to daily household expenses, the Prime Minister sought to position his government as one that eases financial burdens while portraying Congress as responsible for past hardships.
The GST revisions are part of the government’s ongoing effort to simplify India’s indirect tax framework and address concerns over inflation. Officials said the latest changes were intended to provide relief to consumers while maintaining stable revenue for the exchequer. However, the debate over tax rates and their impact on affordability continues to fuel political exchanges.
As both the ruling party and the opposition prepare for intense campaigning, the Prime Minister’s “toffee tax” comment has added a new dimension to the discussion on economic governance. While the government highlights its reforms as evidence of fairness and transparency, Congress insists that the narrative being presented distorts the historical record. With elections approaching, taxation policy is set to remain at the forefront of the political battle.
