India has opted to reduce taxes on numerous consumer goods, including soaps and small cars, to boost domestic demand amid economic challenges posed by U.S. tariffs, according to two state ministers on Wednesday.
The revised goods and services tax (GST), effective from September 22, is anticipated to result in a revenue loss of 477 billion rupees, stated West Bengal minister Chandrima Bhattacharya following the GST council meeting.
Indian Finance Minister Nirmala Sitharaman announced on Wednesday that the revised GST will feature only two tax slabs once the new rates are implemented.
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She mentioned that the unanimous decision to reduce consumption tax rates was made by the GST council, which includes state ministers. Additionally, items previously taxed at 18% and 12% have been moved to the 5% slab.
