GST to benefit Lower Middle class :ADB

New Delhi Aug 22: A report was published regarding the benefits of Goods and Services Tax. Asian Development Bank today has said that "GST will benefit the lower and lower-middle income class as it is likely to reduce the tax rate on goods".

The bank has also said that "It will mitigate significantly the negative impact of goods and services tax (GST) on the “bottom half” of the population".

ADB has also said that GST is likely to reduce the tax rate on goods as compared to previously, while tax rates on services are expected to increase.

The development bank has also said that as households progress towards higher income brackets, the share of household budget spent on services increases and on goods declines.

Finally, So, the above overall trend would exhibit a tendency towards lower burden for low and lower middle-income households, while the reverse is likely for upper middle-income and high-income households.