India ushers in GST: How global media covered country’s new tax regime

GST rollout: The Central government is hoping not just to streamline the myriad levies on businesses but to quiet the critics who say Modi has failed to deliver on his policy promises, said an article in NYT.

By: Express Web Desk | New Delhi | Published:July 1, 2017 11:03 pm
GST rollout, GST launch, Goods and Services Tax, international media on GST, GST international media reaction, PM narendra modi, bjp, india news, indian express New Delhi: President Pranab Mukherjee and Prime Minister Narendra Modi press buttons for the launch of ‘Goods and Services Tax at midnight, at the special ceremony in the Central Hall of Parliament in New Delhi on Saturday. (PTI Photo) 

After years of deliberation and filibustering, India has finally ushered in a new tax regime with the introduction of the Goods and Services Tax (GST) aimed at realising the goal of “One Nation, One Tax, One Market.” Touted as the most sweeping economic reform since Independence, GST subsumes a plethora of central and state levies and bring the country under a common market while ensuring better compliance. While addressing a special ceremony in the Central Hall of Parliament during a midnight session, Prime Minister Narendra Modi described GST as a “Good and Simple Tax” that will bring about economic and social reform as well as unify the nation. He also said it will keep a check on corruption and end harassment at hands of officers.

Here’s how international media covered and reacted to the launch of GST in India

BBC

The British-daily said India has replaced its “numerous federal and state taxes with the GST” with an aim to unify the country into a single market. However, it said businesses have been asking for more time to implement changes as they are worried of being not ready for a switch to the new system. BBC also quoted Harishankar Subramanian of Ernst and Young as saying, “No country of comparable size and complexity has attempted a tax reform of this scale.” It said the price of most goods and services are expected to increase in the immediate aftermath of GST.

New York Times

According to the American daily, the Modi-led government is putting India “through a revolution in the way the country does business” for the second time in less than a year. It described the GST as the country’s biggest tax overhaul launched months after abruptly banning most of the country’s currency notes in a bid to stem corruption. The NYT article, ‘After Killing Currency, Modi Takes a Leap With India’s Biggest-Ever Tax Overhaul’, points out that India under the leadership of Modi has begun to lag in recent years and that he has been increasingly criticised by the opposition for falling short of election promises of recharging the economy. With the GST, the article says, the government is hoping not just to “streamline the myriad levies on businesses but to quiet the critics who say Mr. Modi has failed to deliver on his policy promises.”

Khaleej Times

Reflecting on India’s landmark decision, the UAE-based newspaper said, “Never has a nation waited with greater anticipation for the rollout of a Goods & Services Tax or GST (or any tax for that matter) as India has.” The article, “India unites under GST, but this is just the beginning”, points out that India languished under central planning and socialism for over forty years and, therefore, India had to resort to a plethora of indirect taxes on goods and services to make up the revenue shortfall. The daily further said, “Regardless of what happens in the future with GST, it is undoubtedly a step in the right direction.”  The integration of the Indian economy into a single entity, which is the biggest benefit of GST, will improve economic efficiency. Supply chains have been fragmented with undue importance being afforded to

The integration of the Indian economy into a single entity will improve economic efficiency, it said. However, it added that “India needs a host of further reforms before it can even begin to climb up the ladder of prosperity and if this government simply rests on its laurels, thinking that enough has been done “for now” – a favourite Indian government refrain – then it will continue to be business as usual in India – much promised, little delivered.”

Global Times

The Chinese daily lauded Prime Minister Narendra Modi’s determination in initiating a complete overhaul of country’s tax system. “The Modi government has been radical in pursuing financial reforms, and whatever the result is, the reformers’ determination is still laudable given the size and diversity of the country,” said the newspaper. It believes that the new tax policy on gold would improve the transparency and efficiency of gold supply in India.

“Some experts believe that as gold has been a big expense in India’s import bill, the GST and the gold exchange are aimed at bringing the gold market and gold from households into the formal banking system, thus monetizing about 20,000 tons of gold stored at home,” it observed while adding that the desired results would depend on how the authorities implement the new policy and ensure compliance with it.

The article, “India’s gold sector overhaul under GST shows determination to pursue financial reform“, further said the Modi government has been aggressive in its efforts in “pushing forward with the reforms, as evidenced by its drastic demonetization action”.

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  1. R
    Rajan LS
    Jul 2, 2017 at 7:17 am
    Every reform is welcome but it should implement strictly GST may success If the beurocreat businessmen and Ministers not swindle the tax money.And the tax collection should upgrade the Lay man of India equally to all states. MY REQUEST IS service. Sector tax should reduced to 15 .especially Insurance, Banks,Restaurants industry.. Awareness programmes should arrange to every body.
    Reply
  2. V
    Venkatraman Shenoy
    Jul 2, 2017 at 5:36 am
    While BBC and NYT have spoken on expected lines, of not giving any credit to Modi for the earth-shaking reform of introducing GST, Khaleej Times and even Global Times of our dear enemy, China, have been realistic and given credit where it is due.
    Reply