As preparations for the upcoming Union Budget gather pace, tax experts have advised the government to re-examine the current income tax surcharge framework, citing concerns over equity, investment sentiment, and effective tax rates. Analysts argue that elevated surcharges on high-income earners and corporates often result in marginal tax rates that exceed global benchmarks, potentially discouraging risk-taking and capital formation. While acknowledging the government’s revenue imperatives, experts believe a calibrated rationalisation could broaden the tax base and improve compliance.