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Tax Reform in India

Author

Listed:
  • Burgess, Robin
  • Stern, Nicholas

Abstract

The paper traces the development and structure of tax revenues in India since independence. An understanding of the background to India's current severe fiscal problems is crucial to the design of policy to overcome them. At an aggregate level to surges in deficits and debts took place in the 1950s and 1980s. These were decades both of faster growth and or more ambitious economic policies, although the direction of the policies was rather different in the two decades. The structure of taxation appears to have been influenced both by centre-state allocations and relations and by development policy. India has seen a number of valuable reports by government commissions on taxation, and the major ones are reviewed. The most recent report, by the Chelliah Committee, has been of particular comprehensiveness and value. Prominent amongst all the reports has been a recognition of the absence of progress in collecting the personal income tax. The paper concludes by specifying a number of topics for further research, emphasising political economy, income distribution, centre-state relations and allocations, and the integration of tax policy with changing views of the role of the state and towards trade and industrial policy.

Suggested Citation

  • Burgess, Robin & Stern, Nicholas, 1992. "Tax Reform in India," Institute for Policy Reform Working Paper Series 294811, Institute for Policy Reform.
    • Handle: RePEc:ags:iprwps:294811
    DOI: 10.22004/ag.econ.294811
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    References listed on IDEAS

    as
    1. Ahmad,Etisham & Stern,Nicholas, 1991. "The Theory and Practice of Tax Reform in Developing Countries," Cambridge Books, Cambridge University Press, number 9780521265638, January.
    2. Raja J. Chelliah, 1991. "The Growth of Indian Public Debt: Dimensions of the Problem and Corrective Measures," IMF Working Papers 1991/072, International Monetary Fund.
    3. Burgess, Robin & Stern, Nicholas, 1992. "A VAT in India: Problems and Options," Institute for Policy Reform Archive 294685, Institute for Policy Reform.
    4. Buiter, Willem H. & Patel, Urjit R., 1992. "Debt, deficits, and inflation: An application to the public finances of India," Journal of Public Economics, Elsevier, vol. 47(2), pages 171-205, March.
    5. Burgess, Robin & Stern, Nicholas, 1992. "A VAT in India: Problems and Options," Institute for Policy Reform Working Paper Series 294685, Institute for Policy Reform.
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