Tax policy in India
By: PETER, Vasanthi Monsingh
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Contributor(s): KERR, Ian A | Thorpe, Michael.
Material type: 
ArticlePublisher: jun.2002The Asian Journal of Public Administration 24, 1, p. 111-138Abstract: The tax reforms of recent years in India are based on Chelliah's recommendations of simple broad-based taxes with a moderate and limited number of rates. The reduction in direct tax rates in the economy has not only increased revenue collection but also accelerated economic growth. This article aims to investigate the effect of India's tax policy on private capital formation. A time series analysis of data for the economy for the period 1950-51 to 1994-95 reveals that a one percent increase in the direct tax ratio has led to a reduction of 0.12 percent in the ratio of private capital formation to GDP. The article also examines whether there is any gain in opting for an expenditure tax to promote savings and captial formation inthe economy. The major problem facing the Indian direct tax system is evasion of income taxes. The article concludes that an expenditure tax is a poweful to combat evasion
| Item type | Current location | Collection | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Periódico | Biblioteca Graciliano Ramos | Periódico | Not for loan |
The tax reforms of recent years in India are based on Chelliah's recommendations of simple broad-based taxes with a moderate and limited number of rates. The reduction in direct tax rates in the economy has not only increased revenue collection but also accelerated economic growth. This article aims to investigate the effect of India's tax policy on private capital formation. A time series analysis of data for the economy for the period 1950-51 to 1994-95 reveals that a one percent increase in the direct tax ratio has led to a reduction of 0.12 percent in the ratio of private capital formation to GDP. The article also examines whether there is any gain in opting for an expenditure tax to promote savings and captial formation inthe economy. The major problem facing the Indian direct tax system is evasion of income taxes. The article concludes that an expenditure tax is a poweful to combat evasion
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