GST Reforms: A Catalyst for Economic Transformation
The GST Council's decision to simplify taxation to two slabs aims to boost consumption by over 8-10% in rural markets, according to Indian Overseas Bank CEO. It is expected to increase demand across various sectors, reduce costs for farmers, and stimulate economic growth and financial inclusion.
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- India
The recent move by the GST Council to streamline the tax structure is set to enhance transparency and boost consumption in rural India by over 8-10%, revealed Indian Overseas Bank's Managing Director and CEO, Ajay Kumar Srivastava.
Simplifying the tax system from four to two slabs is anticipated to raise demand across retail and agricultural sectors as incomes rise and investments grow. Lowering GST on essential goods and agricultural products is expected to reduce consumer burdens while enhancing economic activity.
GST reforms are projected to improve cash flows and working capital for small businesses, thus fostering financial inclusion. Srivastava emphasized this decision aligns with India's vision of economic transformation and inclusive growth.
(With inputs from agencies.)
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