- India plans to cut consumption taxes by October to boost the economy.
- The government will propose a two-rate structure of 5% and 18%, removing the 12% and 28% rates.
- 99% of items in the 12% category will move to 5%, benefiting companies like Nestle and Hindustan Unilever.
- The tax cuts aim to counteract US tariffs on Indian goods.
- Modi announced the reforms during Independence Day celebrations, promising changes by Diwali.
- The GST Council will make the final decision, with a meeting set for October.
- Citi estimates a revenue loss of around 500 billion rupees, or 0.15% of GDP, due to the tax changes.
Source: gdnonline.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
