Editorial Board
India's New Tax Is a Work in Progress
The introduction of the GST went smoothly, but the job isn't finished.
A simpler bill.
Photographer: Ravi Choudhary/Hindustan Times/Getty ImagesA country rarely praised for its efficient bureaucracy, India has managed its biggest administrative reform in years pretty well. Its new goods-and-services tax, replacing 40 other taxes and levies, came into force earlier this month without undue disruption. This policy deserves to be a great success -- but to make the most of it, the government still has work to do.
Prime Minister Narendra Modi's previous big idea -- declaring 86 percent of India's banknotes void overnight -- took the public by surprise and caused the economy to seize up. Employers couldn't pay wages and workers couldn't buy even basic staples. The full cost of the disruption is still being calculated.