Back from a blogging break and I see that Anna, Sajit, newcomer Apul & the other mutineers have been doing a fabulous job keeping SM interesting & sparkling with life.
It almost hurts to post about a subject as dry as the Indian tax code but hopefully there are other econo-geeks out there who might find this succinct article pretty interesting – Project Syndicate
India illustrates the importance of a well-designed tax system. In Bangalore, high-tech companies have built world-class campuses replete with manicured lawns and high-speed data communication networks. Outside these campuses, however, lie open sewers, uncollected garbage, and roads in acute disrepair. Whereas technology companies instantaneously transmit terabytes of data to remote continents, local transport proceeds at an almost medieval pace. …India’s financial difficulties stem from a badly designed and administered tax system. Rates and rules for personal and corporate income taxes appear reasonable by international standards. Nonetheless, India’s government collects income taxes amounting to only about 3.7% of GDP, about half that in South Korea and the other Asian tigers.
Why? Insane levels of corruption… read on for the details.