Prices of everyday items to come down by Diwali.!?
Prime minister Narendra Modi has announced in his Independence Day address that the next generation of Goods and services Tax (GST) reforms will be implemented by diwali to boost India's economy and reduce the burden on the common man. He said that these reforms will reduce taxes on everyday items and make them cheaper. He said that this move will greatly benefit small businesses and micro, small, and medium enterprises (MSMEs). GST reform is the need of the hour: In his speech from the ramparts of the red Fort in Delhi, prime minister Modi said, "I am going to give a great gift for Diwali. In the last 8 years, we have done a major reform in GST and simplified the tax procedure. Now it is the need of the hour to review it. We have also spoken to the state governments. We are bringing the next generation GST reform, he said.
A group of ministers is currently preparing a report on reducing GST tax brackets and rates. According to an estimate by financial firm Citi, about 20% of goods (including packaged food, apparel, and hotel services) are currently subject to the 12% GST tax bracket. Shifting most of these items to the 5% tax bracket and some to the 18% tax bracket could result in a revenue loss of about Rs 500 billion (Rs 50,000 crore). However, experts believe that this loss will be offset by increased consumer spending, which will give a new impetus to the economy. prime minister Modi's announcement has instilled new confidence among consumers and businesses. The new tax, which will come into effect by diwali, is expected to provide a major relief to families affected by rising prices.
A group of ministers is currently preparing a report on reducing GST tax brackets and rates. According to an estimate by financial firm Citi, about 20% of goods (including packaged food, apparel, and hotel services) are currently subject to the 12% GST tax bracket. Shifting most of these items to the 5% tax bracket and some to the 18% tax bracket could result in a revenue loss of about Rs 500 billion (Rs 50,000 crore). However, experts believe that this loss will be offset by increased consumer spending, which will give a new impetus to the economy. prime minister Modi's announcement has instilled new confidence among consumers and businesses. The new tax, which will come into effect by diwali, is expected to provide a major relief to families affected by rising prices.