AT MIDNIGHT, MODI RINGS IN INDIA’S ‘GOOD & SIMPLE TAX’

HISTORIC MOMENT Govt ushers in an ambitious taxation regime that promises to be a gamechanger for the Indian economy

NEWDELHI: Pressing a button at the stroke of midnight on Friday, President Pranab Mukherjee and Prime Minister Narendra Modi launched India’s biggest tax reform from the historic central hall of Parliament, cheered on by some of the country’s top names in politics, business and law.

It was a luxury welcome for the long-awaited Goods and Services Tax (GST), ending a 14-year struggle to enlist political support for a move that will replace some 20 federal and state levies and unify a country of 1.3 billion people into one of the world’s biggest common markets.

The event condensed years of anticipation, frustration and hope into a moment of celebration. A festive air permeated a brightly illuminated, flower-bedecked parliament building. A short film on the GST played out on television screens as soon as Modi and Mukherjee pressed a button.

About 1,000 people packed the hall when Modi began to speak from where India declared itself a free nation and first Prime Minister Jawaharlal Nehru made his famous “tryst with destiny” midnight speech almost 70 years ago.

Modi referred to the central hall’s illustrious history, saying there could be no place more pious to launch what will be a crucial cog in India’s gearwheel of growth.

“From Leh to Lakshadweep, India will now have one tax. GST is actually a Good and Simple Tax,” he said as the audience thumped their desk in approval.

Both Modi and finance minister Arun Jaitley struck a note of political conciliation as they shared credit for the rollout of the GST with all political parties and past governments.