After the central government-led GST council decided to revamp the economy’s current tax structure, the fast-moving consumer goods (FMCG) giant ITC Ltd announced on September 18, 2025, that it has decided to pass on the full benefit to its customers across the firm’s portfolio.
ITC Bringing Required Relief to Consumers
ITC executive director B. Sumant stated that the changes have been revolutionary for businesses and consumers alike, facilitating compliance and fostering expansion. He went on to say that the rationalisation of the GST rate in a number of sectors will undoubtedly benefit consumers by increasing affordability, stimulating consumption, and bolstering investments, growth, and jobs.
The full advantages of the GST rationalisation will be transferred to all relevant products at ITC. According to the corporation, its FMCG companies reach about 7 million retail locations throughout India and cover a broad range of categories and goods. In contrast to its previous multi-slab structure, the national government’s GST Council suggested that India have two GST tax slabs, one at 5% and another at 18%, during its 56th meeting on September 3, 2025. On September 22, 2025, the revised GST structure is scheduled to go into force.
Like ITC, Maruti SuZuki Also Announced Price Cuts
As a result of the GST council’s rate rationalisation decision, automakers such as Maruti Suzuki announced their own price reductions. The sub-four-metre car market, which makes up a major amount of the company’s portfolio, is currently being capitalised on by India’s largest automaker.
Maruti Suzuki passenger cars will be up to INR 1.29 lakh less expensive starting on September 22, 2025, the day the revised GST structure goes into effect, according to earlier reports from a number of media outlets.
Following the GST rate reductions in the Indian economy, additional automakers, including Mahindra & Mahindra, Tata Motors, TVS Motor Co., Yamaha, Honda Automobiles, and Hero MotoCorp., have announced price reductions on the ex-showroom prices of their vehicles.
It is anticipated that these price cuts will increase consumer spending and maybe increase demand for these commonplace items. Additionally, the action shows that the FMCG industry is committed to transferring the advantages of tax cuts to final customers.
Customers are anticipated to embrace the price cuts for these well-known FMCG brands, which could result in higher sales volume in the upcoming months. These price reductions may further encourage consumer spending in the FMCG industry as the festive season draws near.
Quick
Shots
•Consumers to get direct price relief
on ITC products from September 22, 2025.
•ITC FMCG products available in 7
million retail outlets nationwide.
Tax revenue maintains the nation afloat. But not all taxpayers perform the same set of policies and rules. By supporting attorneys, accountants, white-shoe experts, and complicit Western governments, the affluent and well-attached have ignored spending trillions of bucks in taxes. The rest of us surround the distinction or, generally, can’t, leaving capital needed to build roads, schools and deal with existential menaces like environmental change and widespread pandemics.
Tax havens make it all likely to be feasible and possible too. By some estimations, almost 10% of the gross production of all the economies in the civilization is placed in offshore monetary hubs, maintained by shell corporations that exist only on paper. The taxes to governments, in lost revenue, is totaled to surpass $800 billion a year.
The wealthy preserve the capital to create inter-generational riches, building a modern and new global noble class and worsening the dividing range between the global haves and have-nots. Multinational companies use more cash to cite shareholders and edge out smaller competitors.
Nations that require tax revenue the most lose more tax money as a percentage of GDP than wealthy countries. As with other inequities, the poor get it the worst.
There is no particular definition, but tax havens, or offshore monetary centers, are commonly nations or areas with no corporate tariffs that permit outsiders to establish companies quickly. Tax havens commonly curb public exposure to companies and their proprietors too. Because data can be hard to drag, tax havens are also called secrecy jurisdictions or private authorities. Tax havens mostly always refute surviving as tax havens.
Tax Haven Countries
Tax Haven Countries
Let us know more about Tax havens by knowing where they’re found. One can find it all over the world. Some are independent and self-reliant countries, like Panama, the Netherlands, and Malta. Others are within countries, as the U.S. state of Delaware and in the territories, like the Cayman Islands. Several inquiries have indicated other tax havens, often relying on the origin and subject of papers, such as, the Panama Papers, which disclosed how Mossack Fonseca, one of the massive offshore law firms in the world, sold thousands of shell firms in the British Virgin Islands to buyers around the world.
On the other hand, Mauritius Leaks analyzed how firms used Mauritius to avoid taxes. At the same time, Paradise Papers disclosed the secrets of Bermuda, the isle where the law company Appleby laid the first stone.
Tax havens are not inevitably tax-free. They usually charge a rate of taxes significantly lower than the rate of taxes compared to other nations. They typically wrap this loss of revenue through other sources, like by charging massive taxes on import duties, policies, etc.
They may charge high and even recurring taxes for a firm enrollment and other fees, such as license fees, etc. Hence, the government makes up for the revenue lost due to the reduction in tax prices.
Tax Haven Meaning | tax haven Countries
Who Uses Tax Havens?
Wealthy but contrarily “average” community, involving dentists and at least one Alabama greengrocer, use shell companies for motives. These may encompass preparing it difficult for credible creditors – such as displeased business partners, or tax inspectors, former spouses to observe and regain monies allegedly owed. Investments earned through tax refuges can be very lucrative, owing to the significant tax savings offshore firms may relish.
Businesses, particularly those that transact across boundaries, can relish substantial tax savings by routing expenditures, earnings, or enterprises through assistants in offshore monetary hubs.
For example, a giant pharmaceutical firm might establish a new entity in Bermuda or the Netherlands and “sell” that entity a document for a profitable drug. The parent firm might then spend a massive licensing fee on the offshore company, enabling it to compute lower profits at home and pay a lower tax charge. Drugs company have avoided billions of dollars in taxes of this kind.
Every year, many companies avert spending more than $500 billion in taxes adopting strategies like these. Some pay little or don’t pay at all in their home countries.
When a company says that it pays the taxes it owes, it means the tax mantra. It permits companies to emerge to be good corporate dwellers but does not deny that various firms use loopholes (some later found to be illicit to avoid paying taxes.
Is Tax Havens legal or Illegal?
Tax havens have been cited as “global black holes,” which are adopted to protect the money of the rich and powerful. When tax havens are noticed in such a way, they seem to be illegal, formulated to soothe the wealthy rather than encourage development, which is one of the primary purposes of collecting tax. And, this is not entirely true.
The basic tenet of Public International Law is that of “Sovereignty”. It implies that each sovereign country has the only ability and power to govern its internal affairs and legitimate system. It is upon the government as to whether it prefers to charge tax and to agree on the amount of tax it wants to impose. Thus, this procedure of building a tax haven is not unlawful by itself.
Still, in the age of large globalization, building offshore shell companies are simple. Many companies utilize such tax havens to change the positions of their earnings to such tax havens with the only motive of avoiding taxes, as seen in the example explained above. Such action may be illegal, as it destroys the tax root of the nation, which is something every responsible citizen of that nation is responsible.
Luxembourg, a country that captivates a massive amount of Foreign Direct Investment (FDI), is entitled to be one of the essential tax havens in the realm. Low tax and inflation rates, a booming market economy, and their priority on financial privacy make Luxembourg the excellent place to avert the pressure of paying fees.
Luxembourg is ranked at 6th position as one of the most significant enablers of monetary privacy globally by the Tax Justice Network. Though, Luxembourg does not look like it to be such a fairy tale garden for tax evaders anymore.
If it is created that the main purpose of such investments and agreements is to avoid taxes, then the advantage of the Treaty will not be ready to the person making such investment, and according to Indian Law, their earnings will be taxed in India, therefore precluding tax evasion.
Conclusion
Efforts are being given rise by global organizations like the Organization for Economic Co-operation and Development (OECD) and other nations. It is to avert tax evasion through the exploitation of international laws. The beginning of the BEPS Action Plan and the consequential amendment of DTAAs to form MLIs is a considerable effort to prevent tax evasion.
However, while steps are taken to prevent the method of Base Erosion and Profit Shifting. It’s very tough to shut all the loopholes as the sovereignty of the nations cannot be altered.
FAQs
What is called tax heaven?
A tax haven is any country or jurisdiction that offers foreign businesses and individuals minimal tax liability or Interest Tax Shields for their bank deposits in a politically and economically stable environment.
Tyro professionals are incipient every year, so the tax is levied as much a burden or responsibility to them. However, those fledgling employees/professionals become seasoned ones, someday and may see an uplift or augment in their income in the coming years, thus this will increase the burden as well as responsibility to pay high on income tax.
As is the case, high incomes represent high tax levied on individual incomes and vice-versa. This will reflect a slow-down in the development of future plans of a person, when he/she is paying a high share of tax in the present. And, in such cases, when the taxpayer has paid a superfluous share or underpaying on the prescribed tax, is solicited to make sure to file a return.
That’s where the Government of India introduced various Tax-saving investments to progress financial stable career paths in the future.
Here are Top 7 Tax-saving investments you can invest in 2021:
As said, the future is uncertain, we don’t know what will happen the very next moment? In some cases, only the invested or saved amount of an investment lends as a helping hand in the forlorn situations in the future, despite getting a low rate of return on such investment. Similarly, business is uncertain in various factors such as market price, trends, capital value or profit etc.
Bajaj Life Insurance Capital Guarantee Solution
Bajaj Allianz has come up with its new scheme on tax-saving in 2021- the Bajaj Life insurance Capital Guarantee solution that aids individuals to earn a 100% high rate of return on the investment amount which is piqued to 16.3% in the market as of now. Besides, the schemes provide zero risks and no commission is charged on the invested amount.
Eligibility: This policy/scheme is applicable to 18-65 years.
Policy term: 20 years
Benefits: Bajaj Life insurance Capital Guarantee solution bestows zero risk as well as commissions on the invested amount. The policyholder gets the benefit of partial withdrawals.
This tax-saving plan allows the policyholder for multiple withdrawals and no tax levied under section 10 (10D). Therefore, inbuilt life covers a maximum of 12 lakhs throughout the policy term.
Bajaj Allianz Life Goal Assures
Health is wealth, as we see the reality of the ongoing pandemic really made many individuals enroll on the tax-saving scheme- Bajaj Allianz Life Goal assures. Moreover, we have loads of obligations to fulfil, from education to living under a safe roof and for all that we need a sturdy amount of money to acquire. Because of this, Bajaj Allianz Life Goal Assures provides financial support to individuals as well as his/her family throughout their lives in accomplishing their needs.
Eligibility: This policy/scheme is applicable to 18-60 years.
Policy term: 10-30 years
Benefits: Bajaj Allianz Life Goal Assures offers special loyalty additions on augmenting maturity value at the time of every 5 years of the policy term and mortality charges which have been deducted in the policy term, will be added to the return fund at the time of maturity.
The tax-saving scheme comes with zero commission as well as tolerating partial withdrawals. Apart from that, this scheme permits the policyholder for flexible transfer of different funds in order to maximise the return in various markets.
This tax-saving scheme covers the demise of the policyholder or their beloved one in the family by supporting them financially. The sum assured is expected to be 105% of total premiums which will be received either at the time of maturity/death of the holder or take the fund amount in periodic instalments under the Settlement Options(SO).
Eligibility: This policy/scheme is applicable to 18-65 years.
Policy term: 10 – 30 Years
Benefits: Canara HSBC OBC Life Insurance investment 4G benefits in providing loyalty additions and wealth booster during the policy term. Besides, this scheme offers flexible transfer of invested funds, partial withdrawals, tax exemption, Settlement Options are available to the holders in case to receive benefits on the maturity and Premium redirection is available if the policyholder wants to modify the allocation of future premium into one ULIP fund or more.
Edelweiss Tokio life Wealth secure plus
This tax scheme comes with a combo of insurance plan and investment plan, which is built to protect the wealth of an individual in the present as well as for future generations. The scheme gives 15 lakhs in 30 years if a premium of 8% per annum is paid.
Eligibility: This policy/scheme is applicable to 1-55 years.
Policy term: 10-20 years
Benefits: the fund value will be received either at the time of maturity or death of the insured, not taxable, offers three additions- Loyalty addition at the 6th year of the policy term, Wealth booster addition and Maturity addition.
Max life Online Saving plan
Every individual chooses to join a savings insurance plan so that they and their family can get financial support in times of need. If you want to protect your dear ones the Max life online saving plan is what you are looking for.
Eligibility: This policy/scheme is applicable to 18-60 years.
Policy term: 5 years to the selected policy term for maturity.
Benefits: In Max life, an online saving plan, the total premium paid till the date of death is 105%. The insured can also renounce during the policy term, the person will be funded the sum minus the charge from when they discontinued. Till the last days, the insured will receive the fund value.
HDFC Life Click2Wealth is the same as other insurance that not only supports you but also your family. They give us many alternatives in which we can choose the best that suits us. No policy loans are available. The insured person’s family has benefited accordingly if the person dies. Grace periods are also available as per the plan.
Eligibility: This policy/scheme is applicable to 18-75 years.
Policy term: 10 to 40 years
Benefits: The policy has maturity and death benefits. The fund will be growing even after the policyholder dies as per the premium waiver option. The Premium modes contain many options from which you can choose the best instalments. 1% of the annual premium is added to the fund value. They have 10 fund options. After 5 years, the policyholder can withdraw the money.
ICICI Prudential life signature
A unit-linked insurance plan that supports you to achieve your goals and protects your family. In a systematic plan, Withdrawals in Regular intervals are allowed to support your dreams. Monthly, half-yearly and annual are the three premium paying modes.
Eligibility: This policy/scheme is applicable to 18-75 years.
Policy term: 10 to 30 years
Benefits: After the mature period, the policyholder can choose to withdraw the whole amount or choose a structured payout. The insured will receive the top fund value even if the policyholder dies with a minimum death benefit. The insured is exempt from tax for the premium amount as per section 80c and section 10D.
Conclusion:
Everyone wants to see their loved ones lead a happy and wealthy life, even if they are not present to witness or share the moments with them. Life is precarious, no one can guess what tomorrow will hold for us, so start planning, it’s never too late to start. If you are in search of a path that can help you to lead a financially secure life, then we suggest you seek assistance from any of the above-mentioned insurance companies.
FAQ
How to save tax in 2021?
Life Insurance, ULIP’s, Mutual Funds, Tax Saving Fixed Deposit, SCSS or Senior Citizens Savings Scheme and Provident Fund are some of the ways you can save tax.
What is Section 80c?
Section 80C is one of the most popular section that allows taxpayers to reduce their taxable income by investing in various schemes.
Is your savings account taxed?
Yes, any interest on your savings account is taxable income.
