![]() However, it adopted a flat tax in 1947 which resulted in higher compliance rate and drastic economic growth. Hong Kong was one of the poorest country during the World War II.Best examples of the flat tax system are of Hong Kong, Russia, and New Zealand.A flat tax rate of 12% would be appealing even for the low-income people and the compliance rate will increase by eight percentage points to 33%.While simplification and better administration of the law are major reforms that India requires, some economists even suggest going for a flat tax system or lower tax system.To meet the changing economic needs of the country, and to fix the more than 50-year-old Income Tax Act, 1961 which is not consistent with current times, a flat tax rate system is essential. India’s current tax system is progressive in nature, with tax rates increases when the income level goes up. ![]() READ NOW What is the need for flat income tax? Prelims Sureshots – Most Probable Topics for UPSC PrelimsĪ Compilation of the Most Probable Topics for UPSC Prelims, including Schemes, Freedom Fighters, Judgments, Acts, National Parks, Government Agencies, Space Missions, and more. ![]()
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