Direct Tax Reform-Family as Tax Entity and Other Issues

The draft five year plan 1978-83 calls for a major effort at mobilisation of additional resources. Much of tins effort will have to he directed towards raising further tax revenues. So far, the policymakers have mainly relied on indirect taxes in their efforts to raise additional resources. Since indirect taxes already contribute more than 77 per cent of the total tax revenues, a stage has clearly been reached where we have to rely increasingly on direct taxes.