Union Finance Minister Nirmala Sitharaman reflected on the recently introduced reforms in the goods and services tax (GST) rates, and said it would fuel increased consumption, thus helping the economy.
When asked what would be next on agenda for the finance ministry, Sitharaman told Hindustan Times, "The next would be about regulators who are non-financial. That's one area which is pending reform. I announced it in the budget. That's very critical. Like Competition Commission of India (CCI), Food Safety and Standards Authority of India (FSSAI)..."
In her budget speech earlier this year, Sitharaman had said that a regulatory reforms committee would review all non-financial sector regulations, certifications, licenses, and permissions. "The objective is to strengthen trust-based economic governance and take transformational measures to enhance 'ease of doing business', especially in matters of inspections and compliances. States will be encouraged to join in this endeavour," she was quoted in a government release.
It was also said that the high-level committee would make recommendations within a year.
The GST Council recently introduced major reforms to its structure, approving a two-tier rate structure of 5 and 18 per cent, to take effect starting September 22.
Talking about the reforms, Sitharaman appeared hopeful and said she looks forward to seeing how the reforms will play out and how people will benefit from it.
"I enjoyed this phase. It was rigorous. It was intense. It was like taking a tough exam. And passing. For the entire team. Whether this benefits people is a different exam -- and I will take that too. The rejuvenation I feel... that's the reward for the sweat and toil, I suppose," she told HT.
Sitharaman was asked how states responded to the reforms introduced in the GST rates. To this, the Finance Minister said the only concern brought forth was: if revenues go down.
"...I explained to them that we were all in this together. That all the money was coming from the same pool," she said.
She also expressed hope that people would start buying after September 22. "We have had industry tell us, in cars, white goods...that bookings are not happening, that people are deferring purchases. In all likelihood, from September 22, people will go out and buy, just like they did post Covid. Revenge buying. That's what industry is telling us," she said.