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GST rate cuts to boost affordability, spur consumption
The Daily Guardian
|September 05, 2025
Global investment bank Morgan Stanley notes that the rationalisation of the Goods and Services Tax (GST) structure, approved by the GST Council, is expected to significantly boost consumption in the coming months, coinciding with the onset of the festive season.
In its latest research report, the firm highlighted that the shift from the existing four-tier GST rate system to a simplified two-rate structure of a standard rate of 18 per cent and a merit rate of 5 per cent, will make a range of goods and services more affordable for consumers. A special demerit rate of 40 per cent will continue for a select few items such as tobacco p
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