India makes ACs, tea, school supplies cheaper to mitigate shock of US tariffs
SEPT 4 - India has cut taxes on hundreds of goods to boost consumption and mitigate the potential impact of steep US tariffs. Finance Minister Nirmala Kenya breaking news | Kenya news today |..
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India significantly cut taxes on hundreds of goods, simplifying its Goods and Services Tax (GST) structure into two main slabs of 5% and 18%, effective September 22. This move aims to boost domestic consumption and mitigate the potential economic impact of steep US tariffs.
- The tax cuts are expected to lead to revenue losses of up to $6 billion for the Indian government.
- Finance Minister Nirmala Sitharaman announced the changes, which will make items like school supplies and ACs cheaper, while imported liquor and premium cars will become costlier.
- The new rates coincide with India's festive season, when sales of electronic goods are expected to surge, and follow a $12 billion income tax giveaway earlier this year.
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India and Ethiopia Adjust National Tax Policies Amid Trade and Economic Pressures - September 2025
India has significantly cut taxes on hundreds of goods by simplifying its Goods and Services Tax (GST) structure into two main slabs of 5% and 18%, effective September 22. This policy change is aimed at boosting domestic consumption and mitigating the potential economic impact of steep 50% US tariffs imposed by President Donald Trump, which became effective on August 27. The US tariffs have put Delhi in a difficult position, leading to geopolitical signaling rather than direct retaliation. In a separate move to increase government revenue, Ethiopia has broadened its Value Added Tax (VAT) system through Directive No. 1104/2025. The new regulations mandate more businesses and professionals to register for VAT, a move designed to boost compliance and expand the nation's tax base.
