PM Modi's Diwali Dhamaka might bring GST cuts! This includes potential reductions on small cars and insurance, with the government aiming for broader tax
reforms.
GST Revamp Unveiled
The government is planning a major GST overhaul, possibly including tax cuts on several items. A two-slab structure is being considered, and most items might attract 5% or 18% tax. Luxury goods could see a higher tax rate, potentially touching 40%.
Impact on Consumers
This reform aims to make things cheaper for the common man. Expect price cuts on items like ACs and mobiles. Insurers are also hopeful for reduced GST on health and life insurance premiums, which could benefit many families across India.
Fiscal Targets & Cuts
Despite the planned tax cuts, the government is confident in meeting its fiscal deficit target. This confidence is crucial as tax reforms are implemented, managing the financial implications effectively. The Congress party is advocating for GST 2.0 to be a good and simple tax, not growth-suppressing.
Trade & Geopolitics
Amidst these reforms, India's trade strategies are also evolving, especially considering geopolitical tensions. The article suggests that India's crude oil buying from Russia needs to be re-evaluated, with China and Turkey seeking cheaper oil. This paints a wider picture of economic maneuvering.
