CIVIL SERVICE INFO

TAX HEAVEN COUNTRIES AND INDIA About 60% of India's outward FDI in 2024-25 went to low-tax jurisdictions, commonly called "tax havens," such as Singapore, Mauritius, UAE, Netherlands, UK, and Switzerland. Key Insights - Nearly 56% of India's foreign direct investments in 2024-25 were routed through these tax havens, with the rest going to standard destinations or "other low-tax countries" as per RBI data[1]. - Indian companies use these jurisdictions strategically—not just for tax savings but to improve global presence, ease of operations, and investment structure flexibility. - accounted for the bulk of tax haven FDI destinations. - Investment through tax havens allows easier cross-border movement of funds and greater protection from regulatory risks and tariff wars. Expert Views and Rationale - Experts say outward FDI to tax havens is often a strategic choice, not just for evading taxes but for better efficiency, ease in fund movement, and lega...

LONG AWAITED GST REFORMS IN INDIA The article describes five key ideas for transformative **GST reforms** in India, focusing on rationalising tax rates, boosting manufacturing and consumption, and implementing trust-based systems to help industry growth[1]. ## Main GST Reform Ideas - **Rationalisation of Rates**: Simplifying the current multiple GST slabs into fewer, lower tax brackets aims to encourage manufacturing and consumption, making India’s tax system more predictable and competitive internationally[1]. - **Low-cost Housing Incentives**: Promoting affordable housing through GST reductions is expected to stimulate broad economic effects, benefiting various sectors and driving GDP growth[1]. - **Trust-Based Tax System**: Shifting towards a taxation approach based on trust rather than suspicion encourages greater compliance and less adversarial relationships between businesses and authorities[1]. - **Cheaper Goods, Boosting Demand**: Reducing GST rates will lower prices for consum...