New Delhi: Union Finance Minister Nirmala Sitharaman has announced that Goods and Services Tax (GST) rates will be reduced even further, as the government is nearing the completion of rationalising tax slabs.
FM Sitharaman mentioned that the revenue neutral rate (RNR), which was 15.8 percent when GST was introduced in July 2017, has now come down to 11.4 percent in 2023 and will decrease further.
Speaking at a media event in the national capital, FM Sitharaman said that the work on simplifying GST slabs is almost finished. The GST Council, which is led by the finance minister and includes state finance ministers, is expected to take a final decision soon.
'Now, at this stage, there is one more look that I would (take) the groups (GoM) have done excellent work, but I still have taken it upon myself to, once more, completely review each of the groups' works, and then probably take it to the Council to see if we can come to a final conclusion on this,' the Finance Minister stated.
The Group of Ministers (GoM), set up in September 2021, is working to suggest changes in GST rates and slabs. Comprising finance ministers from six states, the committee aims to make the tax system more efficient by reducing the number of tax slabs, streamlining rates, and addressing key concerns raised by different industries.
The Union Minister emphasised that a final review is underway before presenting the proposal at the next GST Council meeting.
'We'll take it to the next council meeting. We are very close to coming to a final call on some of the very critical issues, reduction, rationalisation of rates, looking at the number of slabs, and so on,' FM Sitharaman said.
When asked about stock market volatility, Finance Minister Nirmala Sitharaman blamed it on global uncertainties such as wars, Red Sea disruptions, and piracy threats, citing these unpredictable factors as a challenge to achieving absolute market stability.
Sitharaman has outlined the government's plans for public sector banks, focusing on increasing public shareholding to attract more retail investors and enhance public participation in the banking sector.
Additionally, Sitharaman noted that India is working towards a mutually beneficial trade agreement with the US. The country is also engaged in negotiations with the European Union and the United Kingdom, with a strong emphasis on protecting national interests.
(inputs from IANS)