Budget 2021

Infographic: The Narrow Tax Base

| Updated on March 15, 2019


Tax collections in India are very low given the size of the economy

Do you wonder why the Indian government levies so many different types of taxes, duties, cesses and surcharges? Well, that is because its tax collections are quite low, given the size of the economy. Tax revenues are low because only a small proportion of Indians pay direct taxes. Despite a number of initiatives to net evaders, the tax base has grown very slowly in recent years. Here's the problem explained.

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Published on February 01, 2017
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