India’s Tax Reform: Small Cars & Insurance Premiums Slashed
India is set to reduce taxes on small cars and insurance premiums, aiming to make essential goods more affordable. Prime Minister Narendra Modi’s proposed tax reform, the biggest since 2017, suggests lowering GST on small petrol and diesel cars from 28% to 18%, while insurance premiums may drop to 5% or even zero. This change is expected to boost consumption and benefit companies like Maruti Suzuki, which has seen a decline in small car sales. As markets respond positively, the reforms could enhance accessibility to vital products for many Indians.
