Mumbai, Aug. 17 -- Prime Minister Narendra Modi's Independence Day announcement of long-awaited Goods and Services Tax (GST) reforms has raised hopes of consumer goods becoming cheaper, giving relief to households and packaged goods makers.

There is a proposal to retain two major GST rates going ahead, eliminating the 12% and 28% slabs. Most of the products and services that currently attract a tax rate of 12% and 28% will be shifted to the 5% and 18% slabs, respectively. A few remaining items in the 28% bracket, currently the highest, will be moved to a new 40% slab, Mint reported earlier. This new slab will cover only a few 'sin goods' such as tobacco products, pan masala, and luxury cars.

"We expect the demand outlook for the FMCG se...