Saturday, June 07, 2025 | 09:23 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Rates are out of tune for higher-income levels, need revisions

India is somewhere in the middle when taxation for the upper-income bracket is considered, but leaving tax rates untouched can translate into a heavier tax burden on the population

tax
premium

Representative Image

Ishaan Gera New Delhi
In 1974, American economist Arthur Laffer proposed a new theory that said reducing tax rates would help increase revenue. The idea did not get much credence then, but years later President Ronald Reagan implemented Laffer curve economics leading to a near doubling of tax receipts in eight years.

In India, tax cut demands are a regular feature of Budget expectations. This year is no different. Rates have been revised often, but the popular complaint is that the tax system burdens the salaried middle class.

Data shows that between 2012-13 and 2018-19 the number of taxpayers in the over Rs 5