India cuts sales tax

India slashed the sales tax rate on over 50 products yesterday in a move aimed at appealing to traders and the middle classes.

A nationwide goods and services tax (GST) was implemented a year ago that has hit businesses and public hard.

The GST council, headed by interim finance minister Piyush Goyal, agreed to lower the indirect tax slab on products such as paints, leather goods, bamboo flooring, stoves, televisions and washing machines from the highest rate of 28 percent to mostly 18pc.

“The exercise was to ensure simplification and rationalization of GST and extend relief to the common man,” Goyal told a news conference in New Delhi on Saturday evening.

The tax rate on ethanol blended with petrol, footwear costing up to 1,000 rupees and fertilizer grade phosphoric acid has been cut to from 12 to 5pc, Goyal said.

The council cut taxes on sanitary pads and fortified baby milk to zero, Goyal said. In a boost to mobile phone manufacturing and electric vehicles, the tax rate on lithium ion batteries was cut from 28 percent to 18pc.