Kelkar Proposals: Taxes and Competitiveness

Taxes and Competitiveness A correspondent writes:
Overall, the Kelkar Task Force is justified in claiming that its recommendations would, if implemented, lower the cost of both debt and equity, reduce transaction costs, boost compliance, increase allocational efficiency (tax breaks no longer privileging one sector over another) and boost revenues. However, the Task Force continues to treat taxation of income and of consumption as if the two were unrelated. Extension of tax to services and integration of service taxation with commodity taxation under a value added tax regime are welcome. But no allowance has been made in the direct tax proposals for the extension of taxation to larger and larger areas of an individual