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India defers plans to hike tax rates on textiles – finance minister – Reuters India

A worker wearing a protective face mask works on a loom in a textile factory, amidst the coronavirus disease (COVID-19) outbreak, in Meerut, India, July 7, 2020. Picture taken July 7, 2020. REUTERS/Manoj Kumar

NEW DELHI, Dec 31 (Reuters) – Indian ministers on Friday deferred plans to hike tax rates on textile items, the federal finance minister said, after protests by industrial associations and some states.

The goods and services tax (GST) rate on textile items had been planned to be raised to 12% from 5% with effect from Jan. 1.

A group of ministers will consider new tax rates on textile and other items later, Nirmala Sitharaman, India’s federal finance minister, told reporters after the meeting of federal and state finance ministers.

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Reporting by Manoj Kumar;
Editing by Alison Williams

Our Standards: The Thomson Reuters Trust Principles.