The government plans to abolish the 28% slab that applied to products such as cars, air-conditioner and refrigerators. About 99% of products now taxed at 12%, such as butter, fruit juices, and dry fruit, would also shift into the 5% bracket.
WHICH SECTORS AND COMPANIES COULD BENEFIT?
Taxes are likely to be lower on personal care items such as hair oil and toothpaste. Taxes on construction goods like cement could also be lowered, boosting demand for homes and infrastructure.
Reduction in tax slabs will help in simplification of taxes rates and will also help in reducing litigation.