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Canada, for instance, has a single VAT rate of 5%, while Japan and Singapore follow similarly straightforward models with rates of 10% and 9%, respectively.
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Gradually phasing in these changes would also prevent disruptions in revenue.
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In a slowing economy, reducing GST rates, especially on consumer goods, could boost consumption and create a virtuous cycle of economic activity.With GST collections already at record levels, there is no pressing need to introduce a 35% tax slab.
Instead, the government should focus on making the tax system simpler and more efficient by lowering rates and consolidating existing slabs.
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Reproducing this content without permission is prohibited.)Oil prices went down on Friday due to concerns about slower demand growth in 2025, particularly in China.
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Meanwhile, slower interest rate cuts could hinder economic growth and reduce oil demand.
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