Indian government passes Goods and Services Tax Bill
Despite its enormous potential, India's governments have failed to provide a decent living to hundreds of millions of people. In 2015 the UN estimated 22% of the country's 1.2 billion people lived on less than $1.25 a day. This terrible figure, believe it or not, reflects a considerable improvement over 15 years. But to keep pulling millions out of poverty and into the modern world, and to realize more of its huge economic potential, the country needs to relaunch its stalled reform program. The government is on the verge of doing this with the passing of the Goods and Services Tax (GST).
- The GST is a new tax structure that should dramatically simplify the current spaghetti bowl of taxes, reducing costs for many companies.
- Expected to lower tax paid by consumers in a number of areas.
- Likely to bring a large chunk of the informal economy on to the books.