India introduces sweeping tax reform

NEW DELHI, July 1 (Xinhua)

India early Saturday implemented its biggest ever tax reform -- the Goods and Services Tax
(GST). Indian President Pranab Mukherjee and Prime Minister Narendra Modi pressed a button
in parliament's central hall in New Delhi at a special midnight session to launch the GST.
The new tax regime will replace more than a dozen state and central levies, with the aim to
unify an economy of 2 trillion U.S. dollars and 1.3 billion people into a single market. "GST is a
tribute to the maturity and wisdom of India's democracy," Mukherjee said. "The new era in
taxation, is the result of a broad consensus arrived at between the center and states," he said.
Modi described GST as "good and simple tax," stating that it was not the achievement of any
one party or government, but a shared legacy. The Congress and several other opposition parties
boycotted the function. Experts said GST will increase tax revenues and reinforce economic
growth. Under GST, taxes would be levied under four basic rates -- 5 percent, 12 percent, 18
percent and 28 percent.
The price of most goods and services is likely to increase in the immediate aftermath of the
new tax law. However, the government said GST will benefit all the stakeholders namely
industry, government and consumer.
"It will lower the cost of goods and services, give a boost to the economy and make the
products and services globally competitive," a government spokesman said. Businesses
communities and traders had sought more time to implement changes. Except Indian-controlled
Kashmir, all the states in India have implemented the new law.

S.Korea's exports rise 13.7 pct in June at 51.4 bln USD

SEOUL, July 1 (Xinhua)
South Korea's exports rose 13.7 percent from a year earlier to 51.4 billion U.S. dollars in
June, a government report showed Saturday.
The exports, which account for about half of the export-driven economy, kept an upward
momentum for the eighth consecutive month, according to the Ministry of Trade, Industry and
Energy.
The overseas shipments also posted a double-digit expansion for six months in a row since
January this year.
Imports advanced 18 percent over the year to 40 billion dollars in June, sending last month's
trade surplus to 11.4 billion dollars. The trade balance stayed in black for 65 straight months.
During the January-June period, exports reached 279.4 billion dollars, up 15.8 percent
compared with the same period of last year. It was the biggest figure since the second half of
2014 when the exports recorded 289.5 billion dollars.