How Indirect Taxes Impact Economic Equity in India
NB, News Briefings, March 2025 Vishal Arora NB, News Briefings, March 2025 Vishal Arora

How Indirect Taxes Impact Economic Equity in India

India’s tax system has undergone significant changes over the decades, shifting from a complex and fragmented structure to a more streamlined approach. While direct taxes now contribute a greater share of government revenue, indirect taxes remain an essential part of India’s fiscal strategy. However, their regressive nature disproportionately affects lower-income households, raising concerns about economic equity.

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