Kolkata, Aug 26 (PTI) ITC Ltd Chairman Sanjiv Puri on Tuesday hailed Prime Minister Narendra Modi's call for next-generation reforms, particularly in the Goods and Services Tax (GST) framework, saying the move will trigger a virtuous cycle of consumption, investment, growth and employment.

He said the government's focus on affordability and accessibility of essential items, including food, will provide significant relief to the middle class, micro, small and medium enterprises (MSMEs), and farmers.

"The government's resolve to ensure ease of living by enhancing affordability and accessibility of all items meant for daily consumption will benefit the sizeable middle-class population, MSMEs and farmers," Puri said in a statement.

A transparent, simplified and growth-oriented tax structure will not only improve competitiveness of enterprises but also promote ease and cost efficiency in doing business, he added.

"The proposed measures will enable formalisation of the economy, create a more tax-compliant society and strengthen the foundations of Atmanirbhar Bharat," Puri said, adding that the reforms will encourage youth to pursue better opportunities and support India's journey towards becoming a developed nation.

The market expects the proposed new GST regime—slashing tax rates and restructuring them into two slabs of 5 per cent and 18 per cent, with a special 40 per cent rate for select luxury or sin goods—to boost the economy and help mitigate tariff threats. PTI BSM RG

Goods and Services Tax reform to simplify rates, improve affordability, boost formalisation and enhance competitiveness in the economy. The proposed Goods and Services Tax (GST) overhaul consolidates rates into two primary slabs and a separate higher rate for select luxury or sin goods, aiming to simplify the tax structure, improve competitiveness, reduce business costs, promote formalisation and tax compliance, and boost affordability and access to essential items for middle-class consumers, MSMEs and farmers.