, Columnist
How to Turn India's Good Tax Bad
Too many layers will undermine the benefits of a nationwide GST.
The bureaucracy is creating more paperwork for businesses.
Photographer: Chandan Khanna/AFP/Getty ImagesThis article is for subscribers only.
India’s tax system is among the most complex of the world -- 157th, according to PricewaterhouseCoopers LLP, with about 33 different payments required. It’s a consistent barrier to entrepreneurship and to investment. That’s why so many people were eagerly anticipating the rollout of the Indian government’s first real attempt at systemic reform in recent years: a nationwide goods-and-services tax. The GST, which is supposed to knit India’s various tax jurisdictions together and make it easier for businesses to claim deductions, has been in the works for over a decade. Initial estimates suggested it could add over two percentage points to GDP growth.