Recently, there has been a shift in focus towards refining the existing tax structures. By streamlining direct taxation, governments can potentially increase revenue without overburdening citizens. For instance, a 1% reduction in tax rates can lead to a 2% increase in tax compliance. Experts suggest that such reforms can have a positive impact on the economy.
With the current fiscal deficit at 6%, these reforms are crucial. The goal is to achieve a balanced budget by 2025. According to a recent study, 60% of taxpayers support these reforms. However, the remaining 40% are skeptical about the effectiveness of such measures.
Only time will tell if these reforms will yield the desired results.