Senior Congress leader Shashi Tharoor on Friday praised the recent rationalisation of Goods and Services Tax (GST) rates, stating it should boost India’s economy and business activity. Speaking at the CREDAI-NATCON conference in Singapore, Tharoor emphasised the need for further simplification, advocating for a single GST rate in the future. The Congress party has long pushed for streamlining the GST structure, which previously had four rates, causing confusion and inequity.

The GST Council recently approved a simplified two-tier structure of 5% and 18% for most goods and services, with a 40% rate for tobacco and ultra-luxury items. Exemptions were also introduced for individual life insurance premiums, including term, ULIP, and endowment plans, previously taxed at 18%. The new rates will take effect on September 22, 2025, except for tobacco products, which will retain a 28% rate plus a compensation cess until December 31.

Tharoor described the changes as a positive step, noting, “It should stimulate manufacturing and the economy.” However, he stressed that moving to a single rate remains a goal, as even the two-tier system could be further simplified. He highlighted the complexity of India’s regulatory framework, calling it one of the world’s most regulated economies, and urged reforms to enhance efficiency, citing Singapore’s streamlined system as a model.

Also Read: Delhi Police Bust Camel Liquor Smuggling Racket, Five Arrested

The Congress leader’s remarks align with ongoing debates about balancing economic growth with fiscal stability. While the GST overhaul is expected to ease compliance and spur growth, Tharoor’s call for broader market reforms underscores the need for continued policy evolution to strengthen India’s economic landscape.

Also Read: Skeletal Remains Found in 2019 Burial Case in Kerala