Union Budget 2026, expectations: There is a view that the Goods and Services Tax rates should be further reduced. Small traders are saying that the government should remove or reduce the GST rates on essential items in the budget. The high tax is burdening the consumers. Their lament is that their business is also slowing down.
Small business owners are expecting a reduction in GST rates on daily-use goods in the upcoming Union Budget . They say their businesses are facing some difficulties due to high taxes and high procurement costs. Traders in Hyderabad have lamented that the high taxes on daily-use goods are not only making it difficult to do business but are also burdening consumers.
Traders said that as the prices of essential commodities are increasing time and again, it is becoming difficult to purchase and stock those commodities. This is reducing profit margins. Daily transactions have also decreased.
He believes that GST should be removed or reduced on basic food and dairy products like milk, sugar, etc. and other daily necessities. This will provide relief to both retailers and consumers.
Some have expressed the view that the tax rate on essential commodities is creating problems at the grassroots level. It is reducing the purchasing power of the common man. It is also adversely affecting the overall market sentiment.
Recently, the government simplified the GST system. The GST rates, which were four in number, were reduced to two. Only the rates of 5% and 18% remain. The rates of 12% and 28% have been dropped. The tax on most goods has been reduced. At the same time, there is a demand for a further reduction in GST. Some are still arguing for a minimum GST rate on all goods.
