India Cuts Taxes on Soaps to Cars as Steep Tariffs Kick In (3)

India has lowered nationwide consumption tax as policymakers step up efforts to boost local demand in the economy buffeted by steep tariffs imposed by the US.

A panel of federal and state finance minsters on Wednesday decided to cut taxes on most items of everyday use, premiums on insurance policies and vehicles. It, however, raised the levy on ‘sin goods’ such as cigarettes, chewing tobacco and some luxury cars to 40%.

The GST Council agreed to two rates of 5% and 18% against an existing four-tiered tax structure, according to an official statement. The new rates will come into ...