Govt not worried about rupee volatility: Finance and Revenue Secy Pandey

This statement comes after the rupee fell to a record low of 87.29 against the US dollar, depreciating by 67 paise in early trading

Finance and Revenue Secretary Tuhin Kanta Pandey on Monday said that the Indian rupee is a free-floating currency and the government is not worried about its ups and downs, which are caused by international money movements.

 

The statement comes after the rupee fell to a record low of 87.29 against the US dollar, decreasing by 67 paise in early trading. The drop occurred amid trade war fears after US President Donald Trump introduced new tariffs — 25% on imports from Mexico and Canada, along with a 10% levy on Chinese goods and Canadian energy.

 

"The government is not concerned over rupee volatility. It is being managed by the Reserve Bank of India (RBI). We aren't into exchange control regime, it's a free-flow system," Pandey said on the sidelines of Ficci post-Budget meeting.

 

 

In addition to this, Pandey also highlighted the need for rate rationalisation under the goods and services tax (GST) regime.

 

“...How exactly it will be able to translate and what are the numbers we will be able to arrive at, which are the rates we will be able to arrive at, that further exercise will be done by the group of ministers (GoM),” Pandey added.

 

For regular taxpayers, the main GST slabs are currently set at 0% (nil-rated), 5%, 12%, 18%, and 28%. Additionally, there are some less commonly used GST rates, including 3% and 0.25%, which are levied on gold, diamonds, and precious stones. There is also an additional levy of compensation cess over and above the highest rate of 28 per cent on demerit and luxury items.

 

During its 55th meeting in Jaisalmer in December last year, the GST Council chose to postpone a significant decision regarding the reduction of tax rates on health and life insurance premiums. The GoM responsible for rate rationalisation requested additional time to review the proposal that involves adjustments to the rates of 148 items. This matter is anticipated to be addressed in the upcoming GST Council meeting, for which the date has not yet been decided.