THE ECONOMY-Constructing a Case

betrays complete disregard of the experience of other countries and of the Indian economy' s own development needs. Even the Tax Reforms Committee had not seen a case for pushing the marginal tax rate on either personal income or corporate profits below 40 per cent as has been done in this budget. The committee had considered a personal income tax regime with a marginal rate of 40 per cent as a moderate one and for corporate taxation it had concluded that "a rate of 40 per cent could not be considered unreasonable, given the spread of rates found in different countries".