India’s Less-Than-Perfect Tax That’s Still a Game-Changer
- Landmark GST to create a common market for 1.3 billion people
- Council still to decide on list of goods in each tax bracket
India Sets Stage for Landmark Tax Reform
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India has backed a multi-tier national tax regime that even in its not-so-perfect form will be a game-changer for Prime Minister Narendra Modi, who is trying to revive manufacturing and boost foreign investment in the world’s fastest growing major economy.
Moving away from the ‘one market, one rate’ tax model, the Goods and Services Tax Council decided on standard rates of 12 percent and 18 percent and two more rates of five percent and 28 percent for the tax’s implementation. Officials are still meeting to finalize details of which goods and services will fall into each bracket.