India will be more appealing to Chinese firms after the clearance of much awaited Goods and Services Tax Bill in the upper house of Parliament, a state-run daily said on Friday. An op-ed piece in Global Times said China was willing to work with India to make GST Bill a “reality”.
It said the passage of the bill could boost Prime Minister Narendra Modi’s political legacy and give him a better chance for a second term. “This (GST) could certainly boost India’s appeal to multi-nationals, including Chinese firms, as a myriad of existing federal, state and interstate levies in the country had previously increased their tax burdens and barred them from further exploring potentials in the world’s fastest-growing major economy.
“China is more likely to see this reform, which aims to make India a better destination for investment, as an opportunity rather than a threat,” the daily said. However, the Global Times lamented that Chinese companies still faced complicated and cumbersome tax system in India.
“Chinese companies are certainly welcoming the move. Along with other restrictions, the country’s complicated and cumbersome taxation system as well as bureaucracy related to tax-collection remains a hurdle for the firms doing business in India.”
“China will be happy to see the reforms go through as it sees this improved investment environment as an opportunity rather than a threat and will be willing to work with India to make it a reality,” the write-up said.
“The move is both politically and economically significant. Politically, it showed that the Modi government can compromise to get reforms made in the national interest. It could add momentum to the world’s already fastest growing economy,” it said.