Taxing the untaxed IV: All that's wrong with India's tax system, GST

Textbooks of economics would tell you that direct tax is progressive because it is based on the cardinal principle of ability-to-pay (equity). Those making profit (corporate tax) and income (individual tax) are asked to pay proportionately - higher the profit or income, higher the tax incidence. On the other hand, indirect tax is considered regressive because it makes no such distinctions. Rich or…