In each of the following questions a short passage is given with one of the lines in the passage missing and represented by a blank. Select the best out of the five answer choices given, to make the passage complete and coherent.
Under taxation is at the roots of the Indian fiscal problems. The available evidence shows that the tax –GDP ratio in India is lower than the level it should have for its per capita GDP by at least 2.5 percent. It is, therefore important to focus reform efforts to increase the tax ratio. Of course, this does not mean that strategy to increase the tax ratio lies in increasing the tax rates. The strategy is to reiterate that tax administration is tax policy. All exemptions will not go. Politically, it is not possible. The world over, there was a time when we thought that equity in tax policy meant reducing the incomes of the rich. But today’s tax philosophy is that equity in tax policy is increasing the incomes of the poor. The incomes of the poor cannot be increased by reducing those of the rich……….