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India has scrapped its controversial 1
The decision over the weekend to ban ties from India After a one-year campaign against the levy, there was a comprehensive tax on goods and services. Activists said it is very callous to tax menstrual hygiene products in a country where most women have no access at all.
At the weekend, the Indian GST Council agreed to lower the VAT on refrigerators, small televisions. Washing machines, hair dryers and a wide range of kitchen appliances, such as blenders, from 28 percent to 18 percent.
The council said tax rates for paints, specialty vehicles such as concrete mixers, utility vehicles and some cosmetic products would also be reduced from 28 to 18 percent.
Industry groups and analysts welcomed the generous cutbacks and said they would boost sales, especially in the upcoming Diwali Christmas season, the main shopping season of the year.
"It's a very, very significant tax cut," said Abhishek Jain, a tax partner for EY India, the FT on Sunday. "It will benefit not only consumers but industry players as well, which could affect government collections in the short term, but if aggregate demand picks up, it should be compensated for."
Analysts estimate that government revenues are rising could be impacted by $ 870 million to $ 1.5 billion a year.
India replaced its complex local taxes with a single national goods and services tax system was introduced a year ago in the most important reform of the government by Prime Minister Narendra Modi.
While the relocation provided for tax relief, the transition was accompanied by difficulties, including a complex system of five different control plates – the highest being 28 percent – and the exclusion of core consumer goods, namely fuel and alcohol, from the system.
Mr. Jain said the move to a wide range of sophisticated household items such as refrigerators, televisions and washing machines from the tax category of 28 percent were an important step towards streamlining the tax rates.
"The general idea is that the 28-percent rate applies only to the tax code" super-luxury "or" sin-commodity ", but they initially retain those other goods because they are worried about the entire collection "Mr. Jain said. "But in light of the upcoming holidays and elections, the government believes that they must now restrict this 28 percent category and they have largely done so."
But the movement that caused the most sensation , was the scrapping of the GST on fascia, which had been heavily criticized by women's rights activists.
Only a small percentage of Indian women – estimates vary from 7 to 12 percent – can even afford bandages or other modern menstrual hygiene products; Nearly 90 percent still rely on old cloth rags to wash and reuse.
The onset of menstruation – and difficulties with it – is an essential factor that keeps adolescent girls away from school, especially in the rural areas of India. 19659005] In this context, activists protested loudly against the introduction of a 12 percent GST on sanitary plates, posing legal challenges in India's court system.