Sir — This refers to the editorial, “Beyond demonetisatisation” (November 17). One of the reasons for India’s poor performance in the human development index is our faulty indirect tax regime. The poor and the middle-class have to cough up substantial sums, and the same amount of indirect tax as their creamy counterparts when they are to buy anything from salt to slippers and food to medicine.
While direct taxes depend on the taxpayers’ ability to pay, indirect taxes, being blind to the economic status of the taxpayers, hit the poor the hardest. Moreover, the collection of an indirect tax often involves large expenses and there is also the possibility of evasion.
Given the huge income disparity among Indians, the Budget should rely more on direct taxes which is just for all. Direct tax regime has helped developed countries attain inclusive growth and has also helped the poor with sufficient cover of social security.