- Centre working on measures including tax cuts, sops for specific sectors
- There is a rethink on the approach that constrained the government from providing a fiscal push in the Union budget
The government is stitching together a set of measures, including tax cuts and targeted sops, to reverse an economic downturn, three people aware of the ongoing discussions said, amid fears of a global slowdown.
The idea is to roll out a host of countercyclical measures, including sectoral incentives and confidence-building steps for the private sector, to stimulate the economy that is grinding through losses, layoffs and an investment freeze.
The measures being considered include steps to boost infrastructure investments; goods and services tax (GST) relief to specific sectors, including the automobile sector, that could boost demand; ways to further cut red tape on cross-border trade and steps to improve ease of doing business, the people cited above said on condition of anonymity.
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Preparations for a GST Council meeting are under way, but it will be convened after the finance ministry takes a view on the extent of benefits to be given, said the first of the three people cited earlier. “We have heard the industry’s demands including of a rate cut. A decision will evolve very soon,” said the person. Anand Mahindra, chairman of Mahindra Group, had last week urged the government to consider temporary relief on GST either in terms of a tax slab change or reduction or removal of the cess on vehicles to stimulate the sector.
Source: Livemint
