Why not only Transaction Fee instead of Many other taxes?

 Dear Sir,

Why not only a transaction fee instead of many other taxes? Simplify taxes by removing various other taxes.

Apropos your editorial, "Why UPI Needs Transaction Fees" (ET Aug 7), UPI in India is a grand success and has become as good as a currency in circulation, eliminating the cost of printing hard currency, its storage, distribution  maintaining currency chests, and the quality of printed currency. UPI is faster and relatively safe.   Many other countries are adopting it because of its convenience, handling and comparatively better accounting, and tracking of information regarding how and where the money moves. This helps enable the building of a huge mine of information/data, assisting policymakers from a broader perspective. UPI's very success in India is because it carries no cost perhaps the only exemption seen in the whole system of transactions. If this is also brought under some levy,  it may catch on in such a way that the levying becomes attractive over a period, building inflationary expectations and adding to the cost of living without any escape route later on. If the very thought of MDR is not nipped in the bud, it may turn out to be an inevitable source of revenue like many others already in vogue. This could introduce unhealthy practices adding to the list of worries from administrative and policy angles.  If transaction fees can replace so many other taxes including Income Tax, no doubt that would be  a very welcome and transformative change worth pursuing.      

(  this letter addressed to ET )

T.V.G Krishnan

(personal views) 

( This letter was sent to ET ).