New Delhi: In what could bring renewed energy to the housing sector, Finance Minister Arun Jaitley said that the government's priority will be to lower Goods and Services Tax (GST) on cement.,
In a detailed Facebook post, Jaitley said, “Today, barring tobacco products, luxury vehicles, molasses, air-conditioners, aerated water, large TVs, and dish washers, all 28 items have been transferred from 28% slab to 18% and 12% slab”.
“Only cement and auto parts are items of common use which remain in 28% slab. Our next priority will be to transfer cement into a lower slab. All other building materials have already been transferred from 28% to 18% and 12%. The sun is setting on the 28% slab,” he added.
The post by the Finance Minister comes two days after the GST Council announced reduction in tax rates on 23 goods. The council reduced tax rates on goods and services including movie tickets, TV and monitor screens and power banks, and exempted frozen and preserved vegetables from the levy.
The reduced rates are likely to come into effect from January 1.
With barely eighteen months of implementation of the GST, Jaitley said that the government is close to completing the first set of rate of rationalisation by phasing out the 28 percent slab except in luxury and sin goods.
“A future road map could well be to work towards a single standard rate instead of two standard rates of 12% and 18%,” Jaitley wrote in the Facebook post.