Prime Minister Narendra Modi has seen the biggest marker of his reformation efforts take hold in the Indian Parliament: the upper house unanimously approved the creation of a countrywide sales tax entitled the Goods and Services Tax.
If passed, the new tax will replace over a dozen levies around the country currently making difficult barriers for trade and market share between the states of India. Goldman Sachs has called this move “one of the world’s most compelling” events in the global economy.
By the end of the year, India’s Goods and Services Tax will have been passed or denied. If passed, it will revolutionize the way Indian economics currently operate and how the national market will interact with the global market.
Experts in business are describing India as a “caged tiger” that will be unleashed on the world. This shift could make India’s emerging market wildly profitable.
Many in the nation are excited, proved by the unanimous decision in the upper house. Once the lower house and over half the states approve the bill, it will be written into law and implemented. However, this process may still be lengthy.
Among other barriers, a new council must be created to bring together experts to manage the new tax and how much will be taxed. The Prime Minister’s administration plans to train 60,000 tax officials to help the entire nation transition.
Modi sees India’s Goods and Services Tax as a victory for the entire country, exclusive of party alliance. He hopes this will be step in the right direction for all in the areas of democracy and dismantling “tax terrorism.”
Although Modi had to compromise in order to pass the bill, the most recent state elections secured him a majority of representatives in the upper house who supported the bill, creating a tide that yielded the unanimous vote.
With this landmark vote, Modi and his administration firmly believe the country is ready to make the change, and look forward to one of the most drastic moves in the country in the last couple decades.
– Connor Borden