GST and income tax cuts to spark sustained economic growth
NEW DELHI, Sep 4 (PTI): GST Reform 2.0, which trims tax slabs from four to two, signals a push for demand-led growth, and together with recent income tax cuts, sets the stage for sustained economic growth, experts said.
The Goods and Services Tax (GST) Council on September 3 approved an overhaul of the indirect tax regime by taxing essentials at 5 per cent and other goods at 18 per cent. A new 40 per cent tax will be applicable on luxury and sin items.
The rejig, to be effective from September 22, aims to simplify the tax structure, ease compliance, boost disposable income and spur overall demand. Key segments/ sectors that stand to benefit include consumer staples (food and personal), retail (apparel and footwear), automobiles (especially small cars and two-wheelers), insurance, renewables and agro chemicals.
