India's Tax Burden Too High, Says Former IMF Executive Director

Surjit Bhalla, former IMF Executive Director, has criticized India's high tax rates ahead of Budget 2025. He argues that India's overall tax-to-GDP ratio of 19% is significantly higher than the 14.5% observed in East Asian countries like China and Vietnam. Bhalla calls for prioritizing personal income tax cuts over corporate tax relief, stating, "We the people need a tax cut." He contends that reducing personal income taxes would boost revenue, increase disposable income, and drive economic growth. This critique comes as the Indian middle class echoes demands for tax relief in the upcoming budget.
Source: DNA India