GST 2.0 tax cuts to boost domestic consumption, cope with tariff headwinds: Marketing Master Anil Singhvi
Zee business executive editor Anil Singhvi praised the giant tax cuts delivered by the GST committee on Wednesday, and soon after Finance Minister Nirmala Sitharaman announced tax cuts on hundreds of consumer projects to stimulate domestic demand. At its 56th session, the committee, chaired by the Finance Minister and the moderators, including the state Finance Minister and tax officials, approved lower taxes for daily items while simplifying the overall structure.
The GST Council – the agency with the highest government tax rates – approved both 5% and 18% structures, canceling interest rates of 12% and 28% while providing a new board of 40% for select evil and luxury goods.
Editor’s take | Anil Singhvi said great decisions that show the center’s intention to act.
The Market Guide said the GST Commission made a “major decision” in its next generation reform.
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Singhwi said the announcements were “commendable” and “may have lasting effects” and gave “a great boost to domestic consumption” in the hope that companies can transfer the benefits of tax cuts to consumers.
He added: “Today’s announcement is commendable and demonstrates the government’s clear intention to act.”
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“The biggest reform since 2019 corporate tax cuts”
Singhvi describes GST 2.0 as the biggest reform since corporate tax cuts to 25% in 2019, and the government estimates loss of revenue will exceed compensation given the expected increase in economic consumption.
He refers to the government’s landmark corporate tax break in 2019, which aims to promote investment, create jobs, boost growth and make India an attractive investment destination.
“There are two ways to deal with the terror of tariffs now: promote domestic consumption and find new ways to export,” Singhway said.
His comments came a few days after the Trump 2.0 administration imposed a 25% tariff on 25% of Indian goods, reducing the overall level to 50%. Many prominent economists and financial experts have criticized the United States for its harsh stance on trading partners such as India. Meanwhile, India insists that its energy trade with Russia is both transparent and compliant, allowing it to protect domestic consumers while complying with global norms.
Marketing masters say that even if businesses pass on to consumers with a 70-80% tax benefit, this will go a long way in supporting demand. “Businesses will naturally tend to keep some profits on their own, but they are expected to transfer their benefits to the end consumer… We hope that lowering interest rates will be passed.”
“In fact, they will never go through completely, but many of the benefits will certainly be passed on,” he added.
Also Read: GST Council to “Great Diwali” Reduced New 40% Tablet, 10 Points
