Finance ministry may simplify GST rates by doing away with the two top rates of 18% and 28%.
New Delhi: The Union government’s 167 ‘transformative ideas for implementation in the first 100 days of the Modi governments second stint – that is by October 15 — is likely to see the Finance Ministry taking measured steps turning India into a $5 trillion economy by 2025 and and work towards its promise to double farm income by 2022 among others.
The ideas which were also part of the government’s earlier action plans while elections were underway have recently been reiterated by the Cabinet Secretary P.K. Sinha in a meeting with sectoral secretaries where he asked them to start implementing these ideas and update on the progress weekly.
Sources said the ideas are a compilation of those aggregated during the elections time and also later as part of the Budget and the main aim is to lift the economy out of the slow growth, push consumption, demand and private investment which are the catalyst for any growth economy.
The other plans for finance ministry to be taken within October 15 time period are simplification of GST by doing away with the two top rates of 18% and 28% where GST tax slabs could be merged into two main rates from four at present.
The 100-day action is also to focus on freezing the bank accounts of the shell companies and those struck off from the MCA list.
The agenda includes some reforms and procedural bottlenecks in the departments to let the pace of transformation more faster.
The sell-off department DIPAM will focus on fully privatising certain loss making CPSEs. The government is even considering lifting the foreign direct investment cap on Air India, the loss-making state-owned flagship carrier, to make it easier to sell after it failed to get any buyer last fiscal.
DIPAM is expected to aggressively pursue strategic divestment within the year and more so lay the roadmap in the next 100 days with concrete progress. It will also have set the tone for more proceeds through launching more ETFs, list of companies already cleared by CCEA.
The Department of Financial Services would have to carve out the roadmap for banking reforms and consolidation of PSU banks at a later stage and the reduction of government holding in PSU banks through ETFs. But the 100-day immediate action would involve Bank credit offtake in MSMEs, NBFCs.
Source : https://economictimes.indiatimes.com/news/economy/policy/100-day-plan-of-modi-2-0-strategic-sales-simplifying-gst-slabs-credit-to-msmes/articleshow/70233638.cms