Tax Reforms Fail to Catch Up with Growth: Expert

During his visit to Delhi, Jeffrey Owens, director of the OECD (Organization for Economic Cooperation and Development) Centre for Tax Policy and Administration, said, “In India, tax reforms have lagged behind growth… Indian economy has transformed in the last two decades… But tax regulations have largely remained the same…”
The economic growth in India has clearly surpassed the pace of the tax reforms, due to which, the problems of money laundering and tax evasion arise leading to $1.4 trillion of black money approximately.
If we go by the unofficial estimates, the quantum of black money in India falls in the range of $450 billion to $1.4 trillion. The high rates of tax in India and the major loopholes which are present in the different policies result in huge accumulations of black money which is then mostly garnered abroad.