A cut in petrol and diesel taxes will raise their consumption, resulting forex outgo and more pollution. But a recent OECD study says: “Corporate taxes are found to be most harmful for growth, followed by personal income taxes, and then consumption taxes. A corporate income tax rate closer to that of other nations will discourage profit shifting to lower-tax jurisdictions. Economic evidence suggests that corporate income taxes are the most harmful type of tax and that workers bear a portion of the burden. Reducing the corporate income tax will benefit workers as new investments boost productivity and lead to wage growth.

Source: The Hindu November 24, 2021 18:34 UTC