{"id":50185,"date":"2025-09-22T02:42:46","date_gmt":"2025-09-22T02:42:46","guid":{"rendered":"https:\/\/gyalchisarshog.com\/?p=50185"},"modified":"2025-09-22T02:42:50","modified_gmt":"2025-09-22T02:42:50","slug":"modis-tax-cuts-will-give-india-a-festive-spending-boost","status":"publish","type":"post","link":"https:\/\/gyalchisarshog.com\/?p=50185","title":{"rendered":"Modi&#8217;s tax cuts will give India a festive spending boost"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Starting Monday, the daily economic burdens of millions of Indians could ease slightly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Staples like milk and bread, life and medical insurance and life-saving drugs will become tax-free. Consumption tax on small cars, television sets and air conditioners will drop from 28% to 18%. And other common goods like hair oil, toilet soap and shampoo will be taxed at a marginal 5% instead of 12% or 18%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The sweeping cuts are part of Prime Minister Narendra Modi&#8217;s major overhaul of India&#8217;s complex goods and services tax (GST) regime announced&nbsp;<a href=\"https:\/\/www.bbc.com\/news\/articles\/cx2jljlnw19o\">earlier this month<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is expected to both simplify the tax code and give flagging household consumption &#8211; which makes up over half of India&#8217;s gross domestic product (GDP) &#8211; a much-needed fillip.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The timing couldn&#8217;t be more opportune.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lower GST rates coincide with the beginning of a long festive season when Indians typically open their purse strings to buy everything from new cars to clothes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This four-month period also brings in a bulk of yearly sales for consumer goods companies such as packaged food makers and apparel manufacturers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The hope is, reduced taxes will mitigate some of the impact of the US&#8217;s bruising&nbsp;<a href=\"https:\/\/www.bbc.com\/news\/articles\/c5ykznn158qo\">50% tariffs&nbsp;<\/a>on India, leave people with more money to spend and spruce up the domestic economy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Starting Monday, the daily economic burdens of millions of Indians could ease slightly. Staples like milk and bread, life and medical insurance and life-saving drugs will become tax-free. Consumption tax on small cars, television sets and air conditioners will drop from 28% to 18%. And other common goods like hair oil, toilet soap and shampoo will be taxed at a marginal 5% instead of 12% or 18%. The sweeping cuts are part of Prime Minister Narendra Modi&#8217;s major overhaul of India&#8217;s complex goods and services tax (GST) regime announced&nbsp;earlier this month. This is expected to both simplify the tax code&#8230; <\/p>\n","protected":false},"author":1,"featured_media":50186,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-50185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-in-english"],"_links":{"self":[{"href":"https:\/\/gyalchisarshog.com\/index.php?rest_route=\/wp\/v2\/posts\/50185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gyalchisarshog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gyalchisarshog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gyalchisarshog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gyalchisarshog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50185"}],"version-history":[{"count":1,"href":"https:\/\/gyalchisarshog.com\/index.php?rest_route=\/wp\/v2\/posts\/50185\/revisions"}],"predecessor-version":[{"id":50187,"href":"https:\/\/gyalchisarshog.com\/index.php?rest_route=\/wp\/v2\/posts\/50185\/revisions\/50187"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gyalchisarshog.com\/index.php?rest_route=\/wp\/v2\/media\/50186"}],"wp:attachment":[{"href":"https:\/\/gyalchisarshog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gyalchisarshog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gyalchisarshog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}