NEW DELHI/MUMBAI: India slashed the sales tax rate on over 20 items on Saturday in a move aimed at appealing to traders and the middle class after Prime Minister Narendra Modi’s ruling party lost elections in five states.
Modi is seeking a second term in next five months amid voter frustration over the abrupt implementation of a nationwide goods and services tax (GST) in July 2017 that has resulted in job losses for thousands of workers in small businesses.
The GST council, headed by India’s 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 percent to 18 percent and on one item — wheelchairs and parts — to five percent.
Most other items saw tax rates cut from 18 percent to 12 percent and five percent.
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 28 percent.
“It is decided to retain sin (such as alcohol and tobacco) and luxury goods in 28 percent bracket. Cement and some auto parts are also still in 28 percent slab,” Jaitley told reporters.
On Tuesday, Modi said the government was planning to cut the number of items taxed at the highest rate so that over 99 percent of items, with the exception of luxury goods, come under the 18 percent or lower rates.
A report by the country’s largest bank State Bank of India estimated that federal and state governments could face a shortfall of about 900 billion rupees ($12.83 billion) in GST tax collections in the current fiscal year against the budget target of 12.9 trillion rupees.
India cuts tax rates on some goods under national sales tax
India cuts tax rates on some goods under national sales tax
- Modi is seeking a second term in next five months amid voter frustration over the abrupt implementation of a nationwide goods and services tax (GST)
- The GST council agreed to lower the tax on some goods including televisions, batteries and movie tickets
Second firm ends DP World investments over CEO’s Epstein ties
- British International Investment ‘shocked’ by allegations surrounding Sultan Ahmed bin Sulayem
- Decision follows in footsteps of Canadian pension fund La Caisse
LONDON: A second financial firm has axed future investments in Dubai logistics giant DP World after emails surfaced revealing close ties between its CEO and Jeffrey Epstein, Bloomberg reported.
British International Investment, a $13.6 billion UK government-owned development finance institution, followed in the footsteps of La Caisse, a major Canadian pension fund.
“We are shocked by the allegations emerging in the Epstein files regarding (DP World CEO) Sultan Ahmed bin Sulayem,” a BII spokesman said in a statement.
“In light of the allegations, we will not be making any new investments with DP World until the required actions have been taken by the company.”
The move follows the release by the US Department of Justice of a trove of emails highlighting personal ties between the CEO and Epstein.
The pair discussed the details of useful contacts in business and finance, proposed deals and made explicit reference to sexual encounters, the email exchanges show.
In 2021, BII — formerly CDC Group — said it would invest with DP World in an African platform, with initial ports in Senegal, Egypt and Somaliland. It committed $320 million to the project, with $400 million to be invested over several years.
