Decadal perspective: Tax base is becoming deeper, wider under Modi govt

Challenges

The share of direct taxes shows signs of declining. The share of indirect taxes has been going up in 

recent years.

Higher indirect taxes are considered regressive. This is because both the poor and the rich end up paying tax at the same rate.  

Takeaways

The tax base is becoming deeper and wider in recent years.

Direct tax collections have more than trebled over the last decade.


Larger tax haul