Ayush Jain, Indore Institute of Law, DAVV University Indore
ABSTRACT
The Indian taxation system is essential for mobilizing resources and promoting socio-economic development. This paper evaluates the system by examining low per capita income, income disparity, and reliance on indirect taxes.
The paper discusses the effects of categorizing GST rates based on commodity prices, addressing consumer behavior, economic equity, industry dynamics, and government revenue. Corporate taxation's progressive nature and its challenges in tax incidence and investment decisions are also explored.
The thesis emphasizes that taxation's primary purpose extends beyond revenue generation to economic sustainability and reducing income disparity. It proposes a balanced approach of strategic government ownership in critical sectors and public-private partnerships to ensure national security and public welfare without undermining market efficiency.
In conclusion, the paper underscores the need for a progressive and fair tax system, recommending simplification, broadening the tax base, and enhancing tax revenue utilization. Continuous reforms and strategic government involvement in the private sector are vital for fostering a balanced, robust economy adaptable to changing conditions.
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