Abolishing Direct Taxes: A Bold Proposal for Economic Growth In recent years, the debate around taxation systems has intensified, with some experts advocating for a shift from direct to indirect taxes. Here's a detailed look at why the Finance Ministry should consider abolishing direct taxes and focusing primarily on indirect taxes: Key Arguments: Current Taxpayer Base : Only 3% of People Pay Direct Taxes : With just 3% of the population paying direct taxes, the current system seems inefficient. The majority of the population is either exempt or evades taxes, questioning the practicality of the direct tax system. Economic Redistribution Through Spending : Investment and Spending : Abolishing direct taxes would leave more disposable income in the hands of individuals. This extra capital would likely be invested in stocks, mutual funds, real estate, and other assets, generating long-term capital gains tax (LTCG) revenues. Consumer Spending : Increased disposable income would boost
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