India proposes slashing taxes on small cars as Modi reform spurs stock market
Summary
India plans to reduce GST on small petrol and diesel cars to 18%, and lower taxes on health and life insurance premiums as part of a major tax overhaul starting October, boosting stocks in auto and insurance sectors.
Key Points
- India proposes slashing GST on small petrol and diesel cars from 28% to 18%.
- GST on health and life insurance premiums may be reduced to 5% or zero.
- New GST structure will have only two rates: 5% and 18%, abolishing the 28% slab.
- Auto and insurance stocks rallied following the tax reform announcement.
