SIR – In India, we have a progressive tax system and a multiplicity of exemptions that distort taxpayers' behaviour the same as elsewhere. However, our system is counter-productive as it also teaches people to avoid and evade taxes and encourages a whole range of activities by taxpayers and taxmen that includes corruption, harassment, intimidation and downright fraud. The last decade has seen the abolition of wealth tax, estate duty and gift tax and a consolidation of tax rates with no adverse effect on tax revenues. Bureaucratic re-engineering of the economy through multiple tax rates is a foolish hope, which is slow in fading. A flat rate for income tax, VAT, customs duty and excise duty would eliminate corruption, encourage compliance, make for better revenues and improve governance. Gautman Pingle Hyderabad, India
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