[ad_1]
print this page
India has shelved its controversial "tax stamps" of 12 percent as part of a broader package of tax cuts aimed at boosting the economy. ;economy.
A complete tax on goods and services came after a year campaign against the tax. Activists said it was very difficult to tax menstrual hygiene products in a country where most women still did not have access.
At the weekend meeting, the GST Indian Council approved the reduction of the value-added tax. washing machine, hair dryer and a wide range of kitchen appliances, such as blenders, from 28 percent to 18 percent.
The Council has declared tax rates on paints, special trucks and trucks. Industry groups and analysts applauded the generous cuts, saying that they would help boost sales, especially during the upcoming holiday season in Diwali, the peak shopping period in the annual calendar.
"It's a very, very important tax cut," said Abhishek Jain, a tax partner of EY India, at the FT Sunday. "This will not only benefit consumers but also industry players, and in the short term this could have an impact on government collections, but if aggregate demand increases, that should offset it."
Newspaper reports analysts estimate that government revenues could be affected by $ 870 to $ 1.5 billion a year.
India replaced its complex a year ago in the most important reform enterprise by the government of Prime Minister Narendra Modi
. While the change was aimed at simplifying taxes, the transition was fraught with difficulties, including a complex system. of five different tax slabs – the highest of which was 28 percent – and the exclusion of staple consumer products, namely fuel and alcohol, from the system.
million. Jain said the move to take a wide range of household items Refrigerators, TVs and washing machines belonging to the 28% tax category represented an important step towards streamlining tax brackets .
"The general idea is that the rate of 28% r" super luxury "or" sin goods "but initially they kept these other goods because they were concerned about the overall collections," he said. said Mr. Jain. "But with the holiday season and the upcoming elections, the government thought that they should now restrict this category by 28 percent, and they did so largely."
Recommended [19659015] But the movement that attracted the most applause was the removal of the GST on sanitary napkins, which had been the subject of fierce anger on the part of female activists. Only a tiny percentage of Indian women – estimates range from 7 to 12% – may even offer sanitary napkins or other modern menstrual hygiene products; Nearly 90% of them still use old cloth rags that they wash and reuse.
The onset of rules – and the difficulties in dealing with them – is an important factor driving teenage girls to leave school, especially in rural areas. 19659005] It is in this context that activists have protested vehemently against the imposition of a 12% GST on sanitary napkins, which has resulted in court challenges in the Indian judicial system.
Source link
