Economic progress and prosperity; Best Navaratri gift by far

It was no coincidence that Prime Minister Narendra Modi decided to implement the GST rate revision exactly on Navaratri day, considered the festival of prosperity. Through reforms in the tax structure, the government aims for economic progress and prosperity for the people.

Although technically, the tax brackets that were in four slabs have been reduced to three slabs of 5, 18, and 40 (luxury slab), the items that fall in the 40 per cent tax slab are either included in the consumption habits of the wealthy class or are outside the list of essential items (sin goods). In addition to essential medicines, personal life insurance and accident insurance have also been completely exempted from GST.

Two factors are important for any country with a vibrant economy. The competition between companies to increase production by offering products at the lowest possible prices, and the freedom that consumers gain in the market, because goods are available at low prices. The increase in both production and consumption will make the market ever more dynamic and will create a surge in the country's tax revenue. There were concerns earlier that companies would cheat consumers without reducing product prices even if tax rates were reduced. In fact, companies engaging in such fraud will be out of the competition if other companies' products are available at lower prices. This means that companies cannot achieve their goals without passing on the benefits they get through tax breaks to consumers.

Almost all daily necessities come under the newly introduced 5% slab. Not only packaged cereals, biscuits, ghee, butter, ice cream, noodles, cakes, sausage, toothpaste, face powder, shampoo, shaving cream, etc., but also life-saving medicines, diagnostic kits, medical-grade oxygen, test strips, etc., will be included in the 5% slab. Meanwhile, the slab for electronic products like air conditioners, washing machines, TVs above 32 inches, monitors, and two-wheelers below 350 cc has been reduced from 28 to 18%. The biggest advantage is that the consumer will be able to realise the benefits of the tax reform at once.

Market reports indicate that the prices of products have started dropping since the first day of the GST tax reform. However, as some companies need a little more time to decide on the changes to be made in the product prices, the consumer may have to wait a few more days to experience the full benefits of the reform. Whatever the case, the change is here. The Navaratri season, which the Prime Minister described as the festival of savings, is evolving into an eternally auspicious time for competition in the market.