- Finance Minister Nirmala Sitharaman indicated that the GST Council might not delay the rationalization of GST rate slabs.
- The intent is to have fewer and lower rates.
- This could boost consumption and be more effective than income tax relief.
- A large part of the income tax giveaways would be used to repay loans.
- The giveaways might not lead to incremental consumption by the rich.
- Reducing GST rates would impact almost the entire population.
- It would help keep inflation in check and allow interest rates to reduce.
- The presumption that raising GST rates would boost revenues is faulty.
- A wide array of goods and services has seen tax rate reductions since the launch of GST.
- The concept of a permanent revenue neutral rate is erroneous.
- The minister signaling a lowering of tax rates is good news.
- The move to make the GST cess on luxury and demerit goods permanent is concerning.
Source: financialexpress.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
