GST Overhaul: Next-Gen Reforms to Simplify India's Tax Landscape
Prime Minister Narendra Modi announced draft next-generation GST reforms designed to simplify the tax system. Under the proposed changes, existing GST slabs will be reduced and rates adjusted to benefit consumers and businesses. The government aims to implement these reforms before Diwali to boost economic growth and consumer spending.
- Country:
- India
In a significant move aimed at overhauling the taxation infrastructure in India, Prime Minister Narendra Modi announced draft proposals for next-generation GST reforms. Speaking on Sunday, Modi emphasized the need for simplifying the current tax system to benefit both consumers and businesses.
Addressing a public gathering after inaugurating two expressways, Modi outlined a vision to reduce the number of GST slabs from four to two, with rates adjusted accordingly. The proposed reforms are set to replace the 12% and 28% slabs with a two-tax structure comprising 5% and 18%, accompanied by a 40% slab for certain demerit goods.
Urging states to cooperate on the proposed reforms to meet the Diwali deadline, Modi explained that the changes, conceived after months of deliberations, aim to streamline tax processes and encourage economic growth. The initiative comes in response to new U.S. tariffs, signaling a need for bolstering local consumption and industry support.
(With inputs from agencies.)
- READ MORE ON:
- GST
- Narendra Modi
- tax reforms
- India
- Diwali
- economic growth
- consumer spending
- slabs
- rates
- tariffs
ALSO READ
Union Push for 'Swadeshi': Farmers Unite for Economic Growth
RBI Holds Repo Rate Steady as Economic Growth Shows Resilience
Maharashtra local bodies to go to polls in phases, process to start after Diwali: official
Deloitte Projects Robust Economic Growth for India Amid Global Opportunities
India and Philippines Propel Trade Talks for Economic Growth
Google News