While people have reservations India launches national tax

It’s historic in the sense that both the centre and the states have yielded ground on their taxation rights, after 17 arduous years of negotiations by successive governments at the centre and in the states.

Other parties said they would join a boycott of a special sitting of the two parliament chambers – to be held by Prime Minister Narendra Modi when the tax takes effect at midnight on Friday. “It has pleasantly surprised everybody by completing its task on time”, the President said. The new goods and services tax (GST) replaces more than a dozen levies imposed nationally and by the 29 states. However, it said businesses have been asking for more time to implement changes as they are anxious of being not ready for a switch to the new system.

Remarking that it had “become a norm to evade taxes”, Arun Jaitley said the government could not keep lending money from various institutions and has to get money from the citizens in the form of taxes to run the country. He said it was the result of the efforts of various officials, politicians, and governments that such a gigantic project could be completed.

GST is expected to simplify the tax structure to do business and ensuring greater compliance and boosting BJP’s economic achievements before the national elections in 2019.

India early Saturday rolled out its biggest ever tax reform in its 70-year history after achieving independence from British rule in 1947.

“During the time of demonetisation I have said that India now needs to define the new normal”.

Albert Einstein had once said that if there is one thing that is most hard to understand, it is income tax. It will bring the Indian economy under a single tax bracket. It is estimated to add 0.4% to 2%to GDP growth.

The sweeping reforms comes less than a year after Prime Minister Narendra Modi withdrew India’s largest banknotes in a sudden move created to outmanoeuvre tax cheats. “The Modi government has been radical in pursuing financial reforms, and whatever the result is, the reformers’ determination is still laudable given the size and diversity of the country”, said the newspaper. Shringi added that it is not a stock clearance sale, but providing customers an idea of the benefits under the new system. “It promises to forever change the way business will be done in India, leading to a unified Indian market place and a wider tax base”, said Harsh Pati Singhania, Director JK Organisation.

He recalled that Prime Minister Narendra Modi had equated transition to GST regime to a person getting new spectacles and getting used to wearing them in a few days.