With a lower tax rate, and with hopes for greater transport efficiency, business are expected to lower prices, spurring greater demand. It is also the next step in the unification, for better or worse, of the Indian state. Analysts expect the federal goods and services tax rate to be set around 18 percent. His Bharatiya Janata Party, known by its initials B.J.P., even opposed a single, federal goods and services tax while in opposition. That is lower than the current tax rate on many items, such as automobiles and most retail goods.

Source: Washington Post August 04, 2016 16:41 UTC