Widening the Tax Base

Abstract

India's revenue base is one of the lowest in Asia. Just 3% of India's population pays income tax compared to over 20% in China and 45% in the USA. Is this a reasonable figure for a country with population exceeding 100 crores? It is an accepted fact that resource mobilization through the levy of taxes has not been commensurate with effort put in. Direct Taxes have proved to be laggard over a period of years.