Vito Tanzi, former Director of Fiscal Affairs at the International Monetary Fund (IMF), proposed that India replace the current multi-rate Goods and Services Tax (GST) with a single flat rate for all domestic consumption and redistribute all income equally to all citizens as a per capita digital transfer through Aadhaar-linked accounts.
Prof. Tanzi was speaking virtually at an international conference on the socio-economic impact of GST organized by the Center for Development Studies (CDS) here on Saturday. According to the statement issued by CDS, Prof. Tanzi invoked Leonardo da Vinci’s principle – simplicity is the highest form of sophistication – as the organizing principle of sound tax policy.
Prof. Rather than injecting equity into a complex rate structure, Tanzi said, India could achieve redistribution more efficiently and transparently on the expenditure side — generating higher, stable revenue through a simplified GST and returning it directly to citizens.
The two-day conference, which ends on Sunday, brings together academics, policy makers, researchers and practitioners to explore the impacts of the GST reform across consumption patterns, fiscal federalism, state finances and broader socio-economic outcomes.
Published – 28 March 2026 22:10 IST
