Economy Watch

Economy Watch

India has enacted land mark legislation that is set to become law. This has to do with the Goods and Services Tax (GST) regime in the country that had defied reform because of political infighting and rivalries. Now the BJP government and the Opposition have come together to bring in a new GST law that will do away with as many as 17 taxes and bring about tax uniformity in the 29 states and 7 union territories of India. This will create a one giant consumer market with a single rate of tax determined by a GST council. The tax could be a maximum of 18 percent though the rate being quoted as likely is 10 percent. It has taken more than a decade to bring this about to end the tax nightmare and the harassment that consumers faced. So while India mishandles Kashmir and Dalits and relations with Pakistan and makes inappropriate statements on Baluchistan it does have the GST feather in its cap! The GST reform is something Pakistan could look at as part of its long awaited structural reforms.

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