New Delhi, Sep 4
The GST Council's decision to abolish the 12 per cent and 28 per cent indirect tax slabs and to have only 5 per cent and 18 per cent slabs is a silent yet deep-impact reform that will boost consumer sentiment and set the stage for the equity market's trajectory, a report said on Thursday.
"This is the first big reform measure of the government in the current term, which will boost consumer sentiment and provide a consumption fillip. The measure should support growth and encourage longer-term capacity building to drive the economy toward greater self-reliance in a volatile and uncertain global scenario," said Motilal Oswal Financial Services in its report.
The approved measures are likely to yield economy-wide benefits and favorably impact several sectors such as Automobiles (across most segments), Consumer Durables, Consumer Staples, Cement, Hotels, Insurance, Retail, Renewables, Oil and Gas, and Banks and NBFCs.