News about tax

 Modi’s Tax Reform Sparks Market Rally with Focus on Small Cars and Insurance

India is moving forward with a landmark GST reform that could reduce taxes on small vehicles and insurance premiums, signaling a major boost for both consumers and industry stakeholders. Under the proposed changes, the Goods and Services Tax (GST) on small petrol and diesel cars would be slashed from the current 28% to 18%, making entry-level vehicles significantly more affordable for the middle class. Simultaneously, insurance products—particularly health and life insurance—may see their tax rates reduced to 5%, or potentially be granted full exemption, a move that could expand coverage and encourage broader financial inclusion.

These reforms aim to stimulate demand in key sectors, enhance affordability, and promote long-term economic growth. For the automotive industry, lower GST on small cars could drive higher sales volumes, especially in rural and semi-urban markets. In the insurance sector, reduced tax burdens are expected to incentivize more individuals to invest in protective financial products, improving overall social security. If implemented, this GST overhaul could mark a significant step toward creating a more equitable and consumption-driven economy.