India Sees Growth Imperiled With Greek-Like Tax Evasion

The Black Economy in India, Author: Arun Kumar

By Tushar Dhara and Cherian Thomas – India loses 14 trillion rupees ($314 billion) from tax evasion annually, depriving it of funds for investment in roads, ports and power, said Arun Kumar, author of “The Black Economy in India.”

India’s post-independence tax and regulatory code created incentives to keep transactions outside the tax system. Prime Minister Manmohan Singh began attacking that structure as finance minister in 1991, accelerating tax cuts and reducing the bureaucracy. The top individual income tax rate is now 30 percent, from 97.5 percent in 1971. more>



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