Union Finance Minister Nirmala Sitharaman has announced that Goods and Services Tax (GST) rates will be further reduced as the process of simplifying tax slabs is almost complete. She stated that the revenue neutral rate (RNR), which was 15.8 percent when GST was introduced in July 2017, has now dropped to 11.4 percent in 2023 and will decrease further.
Speaking at a media event in New Delhi, the finance minister explained that the final phase of rationalising GST slabs is underway. The GST Council, which consists of state finance ministers and is chaired by the Union Finance Minister, will soon take a final decision on the changes. Sitharaman mentioned that while the Group of Ministers (GoM) has done excellent work on this issue, she is personally reviewing all aspects before presenting it to the Council.
The GoM was established in September 2021 to suggest changes in GST rates and tax slabs. This committee, which includes finance ministers from six states, has been working on making the tax system more efficient. The rationalisation process aims to reduce the number of tax slabs, streamline rates, and address concerns raised by various industries. Sitharaman confirmed that a final review is in progress before presenting the proposal at the next GST Council meeting.
Stock Market Volatility and Global Uncertainties
When asked about stock market fluctuations, Sitharaman attributed them to global uncertainties such as wars, disruptions in the Red Sea, and piracy threats. She explained that absolute stability in the markets is difficult to predict due to these unpredictable global factors.
Public Sector Banks and Increasing Public Shareholding
Regarding public sector banks, the finance minister stated that efforts are being made to increase public shareholding. The government aims to attract more retail investors to public sector banks, encouraging greater public participation in the banking sector.
India’s Trade Relations with the US, EU, and UK
On India’s trade relations, Sitharaman mentioned that discussions are ongoing for a mutually beneficial trade agreement between India and the United States. She also highlighted that India is actively negotiating with the European Union and the United Kingdom while ensuring that national interests are safeguarded.
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