India's Finance Minister Slashes GST to Boost Economy

In a significant move to bolster domestic demand, Indian Finance Minister Nirmala Sitharaman revealed substantial tax cuts on essential consumer goods. The decision aims to counteract the economic strains from hefty U.S. tariffs.

Addressing the criticism of the convoluted GST structure, Sitharaman shared the panel's approval of a simplified two-rate system. This revision replaces the previous four rates, thereby alleviating the tax burden on items like toothpaste, shampoo, and small cars. Consequently, GST is now exempt on life and health insurance policies.

The recalibrated rates are set to take effect on September 22, coinciding with the start of the Hindu festival of Navratri, marking a significant shift in economic policy as championed by Prime Minister Narendra Modi.

(With inputs from agencies.)