India's Modi dangles tax cuts as US tariffs loom
Summary
Indian Prime Minister Narendra Modi proposes significant cuts to the goods and services tax to boost demand ahead of potential US tariffs that could double import duties from 25 to 50 percent on India.
Key Points
- Indian Prime Minister Narendra Modi announced plans to cut consumption taxes on everyday goods to boost domestic demand.
- US President Donald Trump threatens to double import duties on India from 25 to 50 percent over its oil purchases from Russia.
- Modi's tax reforms aim to simplify the GST structure into two tiers taxed at 5% and 18%, down from a complex four-tier system.
- The proposed tax cuts could reduce tax collections by $13 billion to $17 billion, providing relief amid looming US tariffs and ahead of key state elections.
