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'GST Cuts To Boost Consumption; 99% Of All Goods & Services Now Under 0%, 5% Or 18% Slabs': FM Sitharaman
'GST Cuts To Boost Consumption; 99% Of All Goods & Services Now Under 0%, 5% Or 18% Slabs': FM Sitharaman
Finance Minister Nirmala Sitharaman on Friday said that 99% of goods and services under GST now fall in the 0%, 5% or 18% slabs, with only 1% categorised as “sin goods". She added that the latest round of tax cuts will boost consumption, spur investments and bring more buoyancy to revenues.
In an exclusive interview with Network18 Group Editor-in-Chief Rahul Joshi, Sitharaman said: “99% of all the goods and services which are touched by GST are now either in 0% or in 5% or in 18%. That 1% is what makes for the demerit goods, which popular parlance says sin goods. That is the extent to which we have cleansed the system of anomalies, doubts, duplications and interpretative issues."
The finance minister said that the rationalised tax structure, combined with earlier income-tax cuts, ensures that citizens have more disposable income. “With consumption going up, there is a potential for capacity to grow, investment to grow."
“The citizen now has a choice to meet his aspirations and his expectations. He cannot say, look, I have the money because the income tax is reduced, but these items are beyond my affordability. Now, everything has come down," she said.
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On September 3, the GST Council, chaired by Sitharaman, slashed rates on several items ranging from daily-use products like shampoo and hair oil to automobiles and televisions. The council also simplified the structure to three slabs — 5%, 18% and 40%.
She added that the relief is already being felt across households. “I have met a lot of individuals from different strata of society saying, ‘I will have more money to send my son to medical college. My daughter is doing engineering and I will be able to fund her higher studies.' For ordinary citizens working in small stores or driving a car or taxi, the rate cut has an immediate psychological effect. On the back of this, there will be buoyancy in revenue."
Source: News18
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