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Title: India introduces sweeping tax reform
Source: Xinhua
URL Source: http://news.xinhuanet.com/english/2017-07/01/c_136409130.htm
Published: Jul 1, 2017
Author: Illo Gical
Post Date: 2017-07-01 19:59:55 by Anthem
Keywords: taxation, tards, transactions
Views: 228

India early Saturday implemented its biggest ever tax reform -- the Goods and Services Tax (GST).

Indian President Pranab Mukherjee and Prime Minister Narendra Modi pressed a button in parliament's central hall in New Delhi at a special midnight session to launch the GST.

The new tax regime will replace more than a dozen state and central levies, with the aim to unify an economy of 2 trillion U.S. dollars and 1.3 billion people into a single market.

"GST is a tribute to the maturity and wisdom of India's democracy," Mukherjee said.

"The new era in taxation, is the result of a broad consensus arrived at between the center and states," he said.

Modi described GST as "good and simple tax," stating that it was not the achievement of any one party or government, but a shared legacy.

The Congress and several other opposition parties boycotted the function.

Experts said GST will increase tax revenues and reinforce economic growth.

Under GST, taxes would be levied under four basic rates -- 5 percent, 12 percent, 18 percent and 28 percent.

The price of most goods and services is likely to increase in the immediate aftermath of the new tax law. However, the government said GST will benefit all the stakeholders namely industry, government and consumer.

"It will lower the cost of goods and services, give a boost to the economy and make the products and services globally competitive," a government spokesman said.

Businesses communities and traders had sought more time to implement changes. Except Indian-controlled Kashmir, all the states in India have implemented the new law.


Poster Comment:

I like to help people when I can, so I started robbing them to help them economically. Some of them begged me to delay my new program to give them time to implement changes. I don't understand that...

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