India confident of meeting fiscal deficit target, despite planned tax cuts
Add BT as a preferred source
[NEW DELHI] India is confident of meeting its fiscal deficit target of 4.4 per cent for the current fiscal year, according to a government source with knowledge of the matter, despite its plans to cut consumption tax later this year.
In the biggest tax overhaul since 2017, Prime Minister Narendra Modi on Saturday announced sweeping changes to the complex goods and services tax (GST) regime which will make daily essentials and electronics cheaper.
“India’s federal and state governments have options to offset any loss of revenue due to lowering of rates,” the government source said without providing further details.
The source also said it will end the practice of collecting compensation cess by December.
The GST compensation cess is an additional levy imposed on certain items to compensate states for any revenue loss incurred due to the implementation. India’s finance ministry did not respond to a request for comment sent outside of office hours. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
Analysts raise DBS targets to as high as S$81 after record Q2 net profit
How BYD disrupted Singapore’s car market – and why the strategy is turning on itself
Two-thirds of Sentosa Cove resales in the red, with average loss topping S$1 million since 2023
Malaysia’s Tabung Haji reckoning: The billions lost, the rescue and what comes next
