Modi's tax overhaul seen slashing levies on shampoos, hybrid cars and TVs
By Nikunj Ohri and Aditi Shah
NEW DELHI, Sept 1 (Reuters) - India plans to cut consumption tax by at least 10 percentage points on nearly 175 products ranging from shampoos and hybrid cars to consumer electronics, said two sources, revealing new details of Prime Minister Narendra Modi's major tax overhaul.
The proposal includes reducing goods and services tax (GST) on consumer items such as talcum powder, toothpaste and shampoo from 18% to 5%, a move expected to boost sales for companies like Hindustan Unilever HLL.NS and Godrej Industries GODI.NS.
Consumer electronics like air conditioners and televisions could see rates drop from 28% to 18%, ahead of the Diwali shopping season starting in October, when brands like Samsung 005930.KS, LG Electronics 066570.KS, and Sony 6758.T dominate sales.
The proposed cut on small petrol hybrid cars to 18% from 28% is a win for Toyota Motor 7203.T and Maruti Suzuki MRTI.NS that have for years lobbied to reduce tax on a technology they say is cleaner than petrol cars.
The list of goods and services that India is planning to cut taxes on will be decided on September 3-4 by the GST council, which is headed by federal finance minister Nirmala Sitharaman and has representation from the country's states.
The sweeping changes to the complex GST regime were triggered by Modi during his Independence Day speech on August 15, where he vowed to cut taxes on daily items without giving details.
India's finance ministry did not immediately reply to an email seeking comments on this story.
Related Articles
Who Smokes Whom? Altria and Philip Morris International for Tobacco Supremacy
TradingKey - As a U.S. tobacco giant, Altria dominates the cigarette market through subsidiaries like Philip Morris USA but faces severe challenges from declining sales and competition from illicit e-cigarettes..jpg)
Bitcoin Tumbles Nearly 5% in August — Can September Turn the Tide?
Ancient whale wallets dumped Bitcoin throughout August, sending its price on a roller-coaster ride. With September’s Federal Reserve meeting on the horizon, traders are asking: can Fed action spark a BTC rebound?
Eurozone Q2 GDP Commentary: Will the Euro's Upward Momentum Persist?
TradingKey - On 14 August 2025, Eurostat published Q2 GDP figures, revealing a drop in the Eurozone's quarter-on-quarter growth from 0.6% in the first quarter to 0.1%. Consequently, annual growth eased from 1.5% to 1.4%. The slowdown primarily stems from the diminishing boost from European...
Why a 50-Basis-Point Rate Cut in September Should Worry Investors? Risks and Fed Independence Loom Large
TradingKey - After the release of the July nonfarm payrolls and CPI reports, markets have all but locked in expectations for the Federal Reserve to restart rate cuts in September, but the magnitude of the cut remains uncertain. U.S. Treasury Secretary Scott Bessent has called for a 50-basis-point
Bitcoin Price Forecast: Trends and Investment Outlook from 2025 to 2030
From $0.01 in 2009 to $120,000+ in 2025, Bitcoin has evolved from obscurity to a globally recognized financial asset. While institutions and governments increasingly embrace it, investors must remain vigilant against volatility, security risks, and scams.
