*THE COMPLEX TAX STRUCTURE:- BUDGET 2025* The finance minister has missed yet another opportunity to simplify the income tax structure in the Budget. This was an opportune moment to get rid of the old tax system entirely and move fully to the new system. A broad-based, low-rated, and less differentiated tax structure is the need of the hour. Moving to the new system without having several tax concessions and preferences should have been done. Even in the new system, it is not clear what is sought to be achieved by having seven rate categories. *With hardly about 2.5 per cent of the population actually paying income tax* , how is such a finely differentiated tax structure supposed to bring about vertical equity? Before 1991, there were 12 rate categories. This was brought down to four based on the recommendations of the Chelliah committee and the 1996 Budget brought it down to three, excluding exemptions. *The current seven-rate structure needs to be urgently simplified to reduce administrative and compliance cost.*