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The government's decision to reduce tax rates on a wide range of consumer items will not fail to encourage consumers before the holiday season that will begin next month with Rakhi and Onam. However, tax rationalization measures are perceived more as a populist policy than as a healthy economy by many.
Prior to the start of the holiday season, the Goods and Services Tax (GST) Council lowered rates by over 100 items, including consumer goods and appliances.
With the new GST rates coming into effect later this week, shopping for your next TV, refrigerator or washing machine would be a lot cheaper. TVs (up to 26 inches), vacuum cleaners, water heaters, water coolers, grinders, blenders and juicers will also cost less with the reduction in the tax rate about 15 items from 28% to 18%. The new rates will apply from July 27th.
The cost of painting your home will also decrease as prices for paints, varnishes and putty fall. Similarly, GST rates on electric shavers, hair clippers, hair dryers, hair straighteners, cosmetics, perfumes and toilet sprays were reduced from 28% to 18%. The cost of lithium-ion batteries for mobile phones and electric vehicles will also decrease after a 10% reduction in tax rates.
The GST rate was also reduced from 18% to 5% for shoes up to Rs 1000. Welcoming the government's decision, Manish Sharma, president of the Association of Manufacturers' Consumer electronics (CEAMA), which is also the CEO of Panasonic India and Southeast Asia, said: "This is a welcome The government has announced that the reduction of the GST on TV sets of 28 inches to 18 p. "
" This should give a good boost to the industry, which would stimulate demand and we hope that the segment of the washing machines will grow well for the rest of the year. 39, year, "said Haier Ind President Eric Braganza
To protect the domestic industry, a number of handicrafts such as handbags, wood frames, glbad statues, art items glbad, lamps and bamboo floors were placed% The tax on carpets made in May n, textiles, upholstery and toran has also been reduced from 12% to 5%.
Speaking of the revenue impact of the government's decision, a Finance Ministry official said: in the highest tax bracket of 28% would result in a loss of income from the government. about 6,000 crore Rs. "
Up to 15 items were moved from 28% to 18% next slab, leaving only 35 items, including AC, automobiles
BONANZA TIME [19659011] Rate reductions in the highest tax bracket of 28% would result in a loss of revenue of about Rs 6,000 for the government
The new rates will apply from July 27
] Cutting the slab on TVs will improve penetration in small towns
( With entries PTI )
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