Quest to widen direct tax net
There is need to drastically reduce the income tax exemption slab; say, down to Rs1 lakh from the current minimum threshold of Rs2.5 lakh
Is there a wide gap between India’s political democracy and fiscal democracy? This year’s Economic Survey has a telling graph, a picture that speaks a thousand words. It shows that in Norway, for every 100 voters, there are 100 taxpayers. In India for every 100 voters, we have seven taxpayers. It is as if the voters form the government, and the taxpayers help fund it. Of course, these numbers are only for people who pay income taxes. The burden of indirect taxes is upon all of us. But is this fair?