Goods and Services Tax reform to consolidate indirect levies and expand the direct tax base for fairer taxation.
Implementation of a Goods and Services Tax requiring constitutional amendment is proposed as the central fiscal reform to consolidate indirect levies and reshape tax administration. The Survey urges widening the individual direct tax base without raising exemption thresholds, phasing out preferential exemptions for high income taxpayers, reasonably taxing income from all sources, reforming Property Taxation through higher rates and periodic updation to discourage speculation and strengthen local finances, and better targeting subsidies to the poor.