The benefits of the new tax system are likely to emerge gradually, and may not be evident before Mr. Modi’s party seeks re-election in 2019. Mr. Modi’s government followed up, almost immediately, by throwing open new sectors to foreign investment. Resistance to the plan has eased in recent months, as Mr. Modi’s party, known by its initials as the B.J.P., put greater effort into winning over the smaller regional parties that had opposed the bill. Still to be settled is the thorny issue of the specific tax rates to be imposed. Praveen Khandelwal, a senior leader of the Confederation of All India Traders, said businesses were now “harassed and victimized” by the cascading demands of multiple tax authorities.

Source: New York Times August 03, 2016 16:12 UTC