Guwahati: Finance Minister Nirmala Sitharaman stated on Saturday that GST rates will decrease further, with tax rate rationalisation nearing completion.
She explained that the revenue neutral rate (RNR) dropped from 15.8% when GST was launched in July 2017 to 11.4% in 2023.
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Speaking at the 25th The Economic Times Awards, she assured to clear any misconception that GST made life more expensive.
She challenged anyone to find an item where the GST rate increased since its introduction, claiming most rates remained the same or decreased.
The Finance Minister also suggested that GST tax rates would continue to decrease further as the rationalisation process progresses.
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In September 2021, the GST Council, led by Sitharaman, formed a group of ministers (GoM) to review tax slabs and suggest changes.
Sitharaman explained that the GoM, consisting of six state finance ministers, did excellent work but she would review their findings personally before presenting them to the Council.
The rationalisation of GST rates involves reducing tax slabs, streamlining rates, and addressing critical concerns within various industries, Sitharaman noted.
On stock market volatility, she highlighted global issues such as wars and piracy threats, questioning the possibility of achieving absolute market stability.
She cautioned against dumping excess inventory from foreign markets, especially after the US imposed extra tariffs on China and other countries.
The government is closely monitoring trade patterns to protect small and medium enterprises from unfair competition, Sitharaman added, stressing the importance of balance.
She reaffirmed the government’s commitment to reducing its stake in public sector banks, aiming to increase retail investor participation in the sector.
“We want to see more retail investors participating in public sector banks,” Sitharaman said, highlighting the importance of broader participation.
Regarding non-banking financial companies (NBFCs), she stated that regulatory measures had addressed risky micro-credit exposure within smaller lenders.
Sitharaman noted that both India and the US aim for a mutually beneficial trade deal, also signaling intensified negotiations with the EU and UK.
She criticized the UPA regime’s trade agreements, claiming they failed to serve India’s interests, and stated that reviews of deals with Japan, South Korea, and ASEAN were necessary.
Sitharaman urged private sector players to speak up about investment sentiment, emphasizing that government decisions depend on private sector feedback.
She reinforced confidence in India’s robust economic growth, highlighting the country’s position as the world’s fastest-growing major economy since FY21.