Most of the readers who have responded here obviously belong to salaried class. It is no surprise that for them tax means Income Tax. The world bank's study is on all taxes and not only on Income Tax. Income Tax rates and compliance costs are quite moderate compared to any western countries. Ask any businessman about the various tax departments and their common response would be that IT Department is best among them, and the worst is the State Sales Tax Departments. This does not mean that IT Department is very efficient but at least they are attempting to improve unlike other tax departments. Just for the records, the cost of collection, i.e. the ratio of amount spent and tax revenue collected, of IT Department is only 0.6 which is lowest in world.