NEW DELHI (AP) — India’s Parliament held a special midnight session Friday to introduce a new single nationwide tax, replacing a complicated mix of state and federal taxes that will change the cost of nearly everything people buy.
India’s president and the prime minister pressed a button heralding the major overhaul of the taxation system — known as the single Goods and Services Tax — from July 1.
Prime Minister Narendra Modi said in a speech that the new system would eliminate 500 types of taxes in favor of one tax across the country, a catalyst that would remove trade imbalance and promote exports.
“GST is a simple, transparent system which prevents generation of blackmoney and curbs corruption. The system gives opportunity to honesty and people who do honest business,” he said.