THE IMPACT OF TAX RATE DIFFERENTIALS ON THE TAX REVENUES – THE CASE OF SALES TAX COMPETITION AMONG A GROUP OF BORDERSHARING INDIAN STATES

Sthanumoorthy R. ()
Additional contact information
Sthanumoorthy R.: Indian Institute of Management Kozhikode

No 59, Working papers from Indian Institute of Management Kozhikode

Abstract: This paper provides empirical evidence on the effect of sales tax rate differentials among a group of five border-sharing states in India on their sales tax revenues during 1990-91 to 1999-00. The results indicate that sales rate differentials in respect of commodities which are susceptible to cross-border shopping cause the consumers to change the location of purchase of such commodities from their home state to the other neighboring low tax states. This is shown to cause revenue loss to the states facing adverse tax differentials. The findings support the recent commodity tax reforms at the state-level in India in the form of introduction of uniform value added tax across the states.

Pages: 1 page
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
https://iimk.ac.in/websiteadmin/FacultyPublication ... ers/59fullp.pdf?t=42 First version, 2016 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iik:wpaper:59

Access Statistics for this paper

More papers in Working papers from Indian Institute of Management Kozhikode IIMK Campus PO, Kunnamanagalam, Kozhikode, Kerala, India -673570. Contact information at EDIRC.
Bibliographic data for series maintained by Sudheesh Kumar ().