US Edition
India Slashes Consumption Tax to Spur Domestic Demand
India's GST reforms cut tax rates on consumer goods to 5% and 18%, introducing a 40% slab for luxury and sin items, aiming to offset $5.49 billion annual revenue loss with increased consumption.
- Finance Minister Nirmala Sitharaman on Wednesday unveiled broad GST cuts on hundreds of consumer items, effective September 22 at Navratri's start.
- Faced with punitive U.S. tariffs, the government aims to spur domestic demand amid economic headwinds from 50% U.S. tariffs imposed by President Donald Trump, while Prime Minister Narendra Modi flagged GST cuts on August 15.
- The GST Council trimmed rates to a two-rate system , cutting toothpaste and shampoo to 5%, small cars and electronics to 18%, and exempting individual life and health insurance.
- Markets and manufacturers could see immediate gains, with Hindustan Unilever, Godrej Industries, Samsung Electronics, LG Electronics, Sony, Maruti, Toyota Motor, and Suzuki Motor benefiting amid a $5.49b revenue loss for federal and state governments.
- Economists argue the cuts could lift consumption amid 7.8% growth in the quarter to June, with Soumya Kanti Ghosh saying the boost will offset any revenue impact.
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GST reforms: A demand-side push to sail India’s ship amid global headwinds
Reductions in rates on essentials, rationalisation of household consumption baskets, exemptions in health and insurance, and correction of inverted duty structures collectively increase disposable incomes and stimulate aggregate demand
·Mumbai, India
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Hartford CourantReposted by 
Independent Español
Independent EspañolBy RAJESH ROY NEW DELHI (AP) — India will reduce taxes on hundreds of consumer goods ranging from air conditioners to compact cars in order to boost local consumption, said the government on Wednesday, in measures that New Delhi has taken to protect its economy from the impact of U.S. tariffs. Finance Minister Nirmala Sitharaman said in a press conference on Wednesday night that the reduction in the tax on goods and services, or tax on consumpti…
·Hartford, United States
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Coverage Details
Total News Sources21
Leaning Left1Leaning Right4Center3Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
13%
C 38%
R 50%
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