Shifting Taxation Paradigm: A Key to Accomplishing Viksit Bharat by 2047

Industry experts emphasize a critical shift in the approach to taxation in India, suggesting a move from focusing on tax rates to generating more revenue, which is deemed essential for realizing the ambitious vision of a 'Viksit Bharat' or Developed India by the year 2047. This shift involves reducing tax rates while simultaneously expanding the tax base, thereby fostering an environment conducive to economic growth and development.

Understanding the Need for Tax Rate Moderation

To achieve the Viksit Bharat goal, experts argue for a moderation of tax rates. Lowering tax rates can potentially increase compliance and attract more investments into the economy, thereby resulting in a larger tax base. Rationalizing the tax structure can lead to a more robust tax revenue system, which is more sustainable and equitable in the long run. This strategy could induce a multiplier effect on the economy, as it increases disposable income for individuals and potentially lowers the cost of doing business for enterprises.

Expanding the Tax Base to Enhance Revenue

Alongside moderating tax rates, widening the tax base is a pivotal aspect of the recommended shift in taxation strategy. Bringing more economic actors into the tax net ensures that the revenue stream is not overly dependent on a small segment of the population or business sector. This involves identifying and tapping into new revenue sources and closing loopholes in the tax system that allow for avoidance or evasion.

In working towards the 'Viksit Bharat' by 2047, such fiscal strategies play a crucial role. However, the successful implementation of these strategies requires coordinated policy measures, stringent enforcement, and substantive economic reforms. If done correctly, the taxation shifts could indeed pave the way for India to transform into a developed and thriving economy over the next few decades.

taxation, revenue, development