<h1>Steep foreign tariffs cut this year's GDP growth by 0.2-0.3 points, GST reform expected to largely offset impact</h1> A senior government economic official said steep tariffs imposed by a major trading partner-including a punitive surcharge on certain energy purchases-will likely reduce GDP growth by about 0.2-0.3 percentage points in the current fiscal year, but recent domestic GST reforms (compressing rates to two main slabs and adding a high rate for sin/luxury goods) are expected to offset much of the impact by stimulating internal demand and mitigating second- and third-round effects on investment and sentiment. The duties chiefly affect labour-intensive export sectors, the trading partner accounts for roughly one-fifth of goods exports, and authorities expect the tariff pressure to be transient; agricultural and payment-currency reform proposals were also discussed.