Provided by Nikunj Ohri and Aditi Shah
New Delhi (Reuters) -Indian plans to reduce the consumer fee at least 10 percentage points for almost 175 products, starting from shampoos and hybrid cars to consumer electronics, said two sources revealing new prime minister’s Narendra Modi Tax Transformation details.
The largest tax system reform of goods and services has been the subject of tense trade relations with the US in almost a decade. Modi repeatedly called for an increase in the use of Indian products. Last month, Modi first marked its reform plan for Independence Day, when he said he would produce products every day for the cheaper people in the world’s fifth largest economy.
Its offer includes reduction of goods and services tax (GST) for consumers such as Talcum powder, toothpaste and shampoo from 18% to 5%, which will likely increase sales in companies such as Hindustan Unilever and Godrej Industries.
In the air conditioner and television collections, GST has fallen from 28% to 18% before the Diwali trading season, which begins in October, when brands such as Samsung, LG Electronics and Sony dominate.
The Indian GST Council, headed by Federal Finance Minister Nirmala Sitharaman and represented by the country’s country, is expected to be completed on September 3-4.
The Ministry of Finance did not immediately respond to the email. A letter looking for comments about this story.
The proposed tax reductions are also intended to mitigate the expected export to the US fall by increasing domestic consumption, helping to increase income from the economy and promote the confidence of Indian manufacturers.
India plans to reduce the consumption fee of basic export goods such as fertilizers, economics and tractors, and their share by up to 5% from 12% or 18%. Reduction also includes the textile sector, one of the largest exporters of India, which is severely affected by US President Donald Trump’s tariffs.
Cars and collars
Toyota Motor and Suzuki Motor Modi’s Modi Government proposed to reduce GST in small hybrid petrol cars by up to 18% from 28%. Car manufacturers have been lobbying for many years to reduce taxes on technology, which they say are cleaner than petrol cars.
By reducing the hybrid fee that uses a combustion engine and an electric motor to feed the vehicle, it will bring it closer to 5% GST in electric cars.
Indian EV manufacturers Tata Motors and Mahindra and Mahindra have previously expressed fear that reducing the hybrid tax risk to distract the country’s electrification ambitions.
The government also proposed to reduce the motorcycle and scooter fee, which is less than 350 CC, which includes suburban vehicles and includes 95% of nearly 20 million two -wheelers sold in India for the last fiscal years, including Bajaj Auto, Hero Motocorp and CMS Motor.