GST Reform Ambitions: Streamlining for Savings
Finance Minister Nirmala Sitharaman will address a state-level ministers' meeting to propose significant GST reforms, suggesting a 2-tier tax structure to reduce rates on common goods and services. The initiative, aiming to simplify the current slabs and alleviate middle-class burdens, will undergo crucial discussions.
- Country:
- India
In a bid to overhaul India's tax system, Finance Minister Nirmala Sitharaman is set to pitch sweeping Goods and Services Tax (GST) reforms. The changes propose a revised two-tier system aimed at lowering tax rates on everyday items, thereby making them more affordable for the middle class and small businesses.
The proposed GST structure, featuring new tax slabs of 5% and 18%, will be addressed in a two-day government officials meeting. This reform intends to phase out the existing 12% and 28% slabs, with a special 40% rate reserved for select items such as tobacco and online gaming.
If the reform gains approval, it will proceed to the GST Council for further consideration. The Centre's intent is focused on simplifying tax obligations to benefit not just consumers, but also the broader economy by fostering growth opportunities within various sectors, especially among micro, small, and medium enterprises (MSMEs).
(With inputs from agencies.)
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