Envisioning Tax Policy for Accelerated Development in India

M. Govinda Rao () and Sudhanshu Kumar ()
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M. Govinda Rao: National Institute of Public Finance and Policy

Working Papers from National Institute of Public Finance and Policy

Abstract: The objective of the paper is to highlight the reforms needed in the tax system to improve the revenue productivity of the tax system to conform to the vision of accelerating economic growth and development in India. Based on the cross-country analysis of tax-GDP ratios in 98 countries, the paper estimates the extent of under-taxation in India. Assuming 8 per cent growth in GDP, the paper estimates the increase in tax-GDP ratios needed to be raised and this additional effort would provide fiscal space for much needed investments in physical infrastructure and human development. The paper goes on to identify the reforms needed to raise the revenue productivity of the tax system keeping in view the best practice approach to tax reform in India.

Keywords: Tax Policy; Tax System; Revenue Productivity; India (search for similar items in EconPapers)
JEL-codes: E62 H2 (search for similar items in EconPapers)
Pages: 22
Date: 2017-02
New Economics Papers: this item is included in nep-mac and nep-pub
Note: Working Paper 190, 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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