What is the story about?
What's Happening?
Agriculture and dairy stocks, including Parag Milk Foods and Dodla Dairy, surged up to 7% following the GST Council's decision to cut taxes on fertilisers, farm machinery, and dairy products. The council, chaired by Union Finance Minister Nirmala Sitharaman, approved rate reductions to ease costs for farmers and consumers. UHT milk and paneer are now tax-free, while GST on condensed milk, butter, and cheese was reduced to 5%. Fertiliser inputs and agricultural machinery also saw significant tax cuts, aligning with the government's agenda to simplify the tax regime.
Why It's Important?
The GST cuts are part of the government's broader effort to make the tax regime more efficient and growth-oriented. By reducing costs for farmers and consumers, the cuts are expected to boost the agriculture and dairy sectors, which are vital to the economy. The move reflects the government's commitment to supporting these industries and enhancing their competitiveness. The tax relief is likely to increase profitability for companies in these sectors, potentially leading to further investment and expansion.
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