Economics
Chaotic Tax Reform Has Led to Revenue Loss in India
- Nov. revenue down 12.26% over Sept. as small firms struggle
- Expected logistics gains on cross-border trade are hard to see
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Trucking firms like Caravan Roadways Ltd., which has more than 500 brightly-painted vehicles crisscrossing India, were meant to see immediate benefits from the biggest tax reform in India’s modern history.
But the chaotically-implemented goods and services tax is derailing the government’s revenue target and hasn’t much improved trade within Asia’s No. 3 economy. "Suspicious states" -- anxious to retain pre-GST earnings -- are stepping up vigilance at their borders, according to Crisil Ltd., and there’s little in the legislation to deter officials seeking bribes.