Recommendations appear in Niti Aayog’s Tax Policy Working Paper Series–II. It says there is a need to shift away from fear-based enforcement to trust-based governance.
Data shows 'revenue foregone' due to tax incentives mostly benefited corporates in 2004-05. Situation improved by 2013-14, but individuals became main beneficiaries only under Modi govt.
The central tax revenues as a share of GDP have fallen. The Covid impact has worsened the situation. Now it’s time to raise rates on under-taxed forms of income and wealth.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
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