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Inequality
: Developed economy has higher share of Direct taxes in total revenue as it's progressive tax hence inequality between rich and poor is reduced

India has 50% share of indirect tax in total tax revenue. We've seen reduction in direct tax ( corporate tax cuts in 2019,22 ) while high rates of Excise on petrol which disproportionately affects poor's purchasing capacity and ultimately increase inequality.
( HENCE INEQUALITY CAN BE ADDRESSED BY BETTER FISCAL POLICY )



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Inequality
: Developed economy has higher share of Direct taxes in total revenue as it's progressive tax hence inequality between rich and poor is reduced

India has 50% share of indirect tax in total tax revenue. We've seen reduction in direct tax ( corporate tax cuts in 2019,22 ) while high rates of Excise on petrol which disproportionately affects poor's purchasing capacity and ultimately increase inequality.
( HENCE INEQUALITY CAN BE ADDRESSED BY BETTER FISCAL POLICY )

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