India’s Taxing Pains
India’s biggest tax reform since independence was launched Saturday to a mixture of protests and confusion among businesses and consumers. Yet despite the initial implementation dramas, analysts have pointed to potential longer-term gains for Asia’s third largest economy.
Formally enacted in a late-night session of parliament Friday, the new goods and services tax (GST) has unified 29 states and 1.28 billion people into a single market for the first time. The move is expected to strengthen government finances, reducing complexity and boosting foreign investment, among other economic benefits.
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