India cuts tax rates
India slashed the sales tax rate on over 20 items yesterday in a move aimed at appealing to traders and the middle class. The GST council, headed by finance minister Arun Jaitley, agreed to lower the tax on some goods including televisions, batteries and movie tickets. The council cut tax rates on six items from the highest tax rate of 28 per cent to 18pc and on one item - wheelchairs and parts - to five per cent.
Most other items saw tax rates cut from 18 per cent to 12 per cent and five per cent. The council has so far taken more than 190 items, including washing machines and leather goods, out of the highest tax rate. Only 34 items - particularly luxury goods - remain in the top slab of 28pc.
“It is decided to retain sin (such as alcohol and tobacco) and luxury goods in a 28pc bracket. Cement and some auto parts are also still in a 28pc slab,” Jaitley told reporters.
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