By – Naval Kagalwala, COO and Product Head, Shriram Wealth Ltd

“The GST Council’s move to rationalise tax slabs is a clear signal of India’s shift towards simplicity, transparency, predictability, ease of doing business and thus strengthening the foundation for a long-term structural growth. For affluent households, the higher levy on luxury categories will modestly increase lifestyle costs, but the broader economy stands to benefit from lower taxation on everyday goods. The balance between boosting demand and aligning luxury & sin consumption with higher tax incidence is measured, with a likely net revenue impact of Rs.48,000 crs. This fiscal impact should be manageable from the likely boost in demand and other avenues. This should also create fresh opportunities across multiple sectors eg. FMCG, healthcare, housing. Overall, this change should help drive growth in domestic consumption.”