Taxes are important for smooth functioning of an economy. They are the main source of federal, state and local government revenues used to several sectors such as infrastructure, health care, education, public transport, etc.As taxes are important for the country, having a concrete tax system is also important as complex the structure will be, people will find more ways to evade it.
A highly effective tax system is need of the hour for all countries across the globe as overly complicated tax systems are associated with high levels of tax evasion, large informal sectors, more corruption and less investment.
Talking about India, the country has come a long way in weeding out complexities but it still has a long way to go in cost effective tax collection systems.
If we look at ease of tax paying index stands at 157th spot when compared with other 189 nations.
As per a study titled- A Comparative Study of Tax Structure of India with respect to other countries- UK and US have way better tax systems.
Here’s where India and other countries stand