Sir — This refers to the article, “Going easy on the biggest tax reform” (June 28) by Navneet Anand. What our country needs now is not just a Goods and Services Tax (GST) regime — which is just another avatar of indirect tax — but a direct tax regime that has helped many countries to get a developed economy. While direct taxes depend on the taxpayers’ ability to pay, indirect taxes hit poor the hardest. Given the huge income disparity among Indians, we should rely more on direct taxes, which is just for all.
The indirect tax regime is also one of the factors of rising inequality. There is a clear case of lopsided growth of our nation that can turn out to be malignant if not taken care of. So, a direct tax regime, with more than 60 per cent of total tax revenue coming from direct tax, along with GST taking care of indirect tax and earning less than 40 per cent of the total total tax turnover, is needed.