Kathmandu. After the tariff policy imposed by the US on India, the Indian government has adjusted the tax rates. In response to the US tax policy, India has decided to simplify the multi-rate Goods and Services Tax (GST) system and reduce it from four levels to two levels. India plans to reduce taxes on ordinary goods and higher taxes on luxury goods.

In response to the US tax policy, India has decided to simplify the multi-rate Goods and Services Tax (GST) system and reduce it from four levels to two tiers (5 percent and 18). Where taxes on ordinary goods are lower and taxes on luxury goods are higher. This will significantly reduce the GST rate on the following goods exported from Nepal.

For Nepal, which is dependent on India’s imported economy, the significant changes in GST are sure to have a direct impact. With the reduction of GST tax on agricultural produce to vehicles, agricultural products produced in Nepal may lose the market and the trade deficit is likely to increase further.

Similarly, gst on daily necessities (hair oil, soap, shampoo, toothpaste, bicycles) and kitchen items has come down from 18 per cent or 12 per cent to 5 per cent. Similarly, gst for home appliances up to 2 inches and washing machines and air conditioners has been reduced from 28 percent to 18 percent.

New Delhi: Prime Minister Narendra Modi in his Independence Day address on Tuesday announced a significant reduction in the tax rates on goods used by the common man. It is seen that the price of goods imported into Nepal will be a little cheaper. However, the price of goods imported from Nepal to India is likely to fall further.