Global think-tank OECD has said that India should bring down corporate tax rate to 25 per cent, introduce inheritance tax and provide certainty in rules.
In its Economic Survey of India, the OECD said comprehensive tax reforms, especially the goods and services tax, would lift all boats and raise revenue helping the government effectively deal with high poverty rate.
As per reports, observing that poverty is still high despite growing prosperity, the survey suggested that living conditions across the states could be improved by focusing on farm output, urban infrastructure, liberalised product and labour market.
"A comprehensive reform of property, personal income and corporate taxes is needed to complement the GST reform. It should aim at raising more revenue to fund social and physical infrastructure in a way that support economic growth, promote social justice and empower sub-national governments to better respond to local needs," the survey further said.