India Proposes GST Reduction on Small Cars and Insurance Premiums to Boost Sales

• India proposes reducing GST on small cars from 28% to 18%
• The proposal is part of broader tax cuts announced by Prime Minister Narendra Modi
• GST on health and life insurance premiums may be reduced to 5% or zero
• Tax cuts could be announced by Diwali in October
• Small car sales have declined as buyers prefer larger SUVs
• Small cars accounted for one-third of passenger vehicle sales last year
• Maruti Suzuki, Hyundai, and Tata Motors would benefit from the tax cut
• Cars with higher engine capacity may have a new special tax rate of 40%
• Details on additional levies for big cars are being finalized

Source: zawya.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.

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