Finance Minister Nirmala Sitharaman hinted at potential reductions in GST rates. She stated that further reductions could be implemented after the process of rationalizing tax slabs is complete.
FM Nirmala Sitharaman: Hopes for significant GST relief have risen. Finance Minister Nirmala Sitharaman indicated this at an event in Mumbai. She stated that further GST rate cuts could be implemented after the process of rationalizing tax slabs is completed. This statement comes as the Goods and Services Tax (GST) Council's Group of Ministers (GoM) nears finalization of its report.
Further GST Rate Cuts Possible
Nirmala Sitharaman mentioned that the revenue-neutral rate (RNR) was 15.8% in 2017, decreasing to 11.4% in 2023. This suggests that there is still scope for further reductions in GST rates. The Finance Minister also indicated that the GST Council is close to making final decisions on major changes.
Finance Minister to Conduct a Thorough Review of GST Reforms
The Finance Minister explained that the GoM has worked diligently to rationalize GST slabs, but she will personally review their recommendations thoroughly. Her goal, she stated, is to balance tax rates and resolve key industry-related issues. This move will not only provide relief to traders and entrepreneurs but could also benefit consumers through tax advantages.
Emphasis on Reducing Government Stake in Banks
During the event, the Finance Minister mentioned the government's ongoing plan to reduce its stake in Public Sector Banks (PSBs). The government aims to increase participation from retail investors and improve competition within the banking sector. Additionally, she shared insights regarding Non-Banking Financial Companies (NBFCs) and the micro-credit sector. She noted that the RBI's crackdown on excessively aggressive lending companies has brought the situation under control.
Confidence in India's Strong Economy
Expressing confidence in India's economic progress, Nirmala Sitharaman stated that since 2021, India has remained the world's fastest-growing major economy. She highlighted India's increasing global economic influence and strengthening relationships with trading partners.
Discussion on India-US Trade Agreement
The Finance Minister also shared her views on the India-US trade agreement. She stated that both countries are working towards a mutually beneficial trade agreement. She also indicated that the government is focusing on policy reforms to further improve trade relations in the future.
