New Delhi: Finance Minister Nirmala Sitharaman announced on Saturday that GST rates will be reduced further, with the tax rationalisation process now in its final stages. She highlighted that the Revenue Neutral Rate (RNR) has already decreased significantly—from 15.8 per cent in 2017 to 11.4 per cent in 2023—and is expected to drop even more in the near future.
GST Council’s Efforts To Streamline Tax Rates
To simplify the GST structure, the GST Council formed a Group of Ministers (GoM) in 2021. This group, consisting of finance ministers from six states, was tasked with reviewing tax rates and slabs. At The Economic Times Awards, Sitharaman was asked whether it was time to rationalise GST rates. She confirmed that the process is almost complete.
Watch Live: Smt @nsitharaman’s fire-side chat at The Economic Times Awards for Corporate Excellence (@ETAwards) in Mumbai, Maharashtra.#ETAwards #25YearsofETAwards @DeloitteIndia @EconomicTimes https://t.co/75p1ocpp0g
— Nirmala Sitharaman Office (@nsitharamanoffc) March 8, 2025
Final Review Before Implementation
“The GoM has done excellent work, but I want to review their recommendations once more before presenting them to the Council for a final decision,” she said.
She further added that while some refinements are needed, the Council is very close to finalising key changes such as rate reductions, rationalisation, and slab adjustments.
Stock Market Volatility: A Global Concern
When questioned about the fluctuations in the stock market, Sitharaman pointed to global uncertainties. “It’s like asking if the world will be calm—will wars end, will the Red Sea be safer, will there be no sea pirates? These are unpredictable factors,” she said, highlighting the impact of geopolitical tensions on financial markets.
Government Encouraging More Retail Investors In Public Sector Banks
Addressing concerns about public sector banks, FM Sitharaman reaffirmed the government’s commitment to increasing public float and encouraging more retail investors to participate in these banks.
“We want to have more retail investors in public sector banks,” she stated, underlining the government’s efforts to make these institutions more accessible to the public. (With PTI Inputs)