Moving to Goods and Services Tax in India: Impact on Indiaâ€™s Growth and International Trade
The differential multiple tax regime across sectors of production leads to distortions in allocation of resources thus introducing inefficiencies in the sectors of domestic production. With regard to Indiaâ€™s exports, this leads to lack of international competitiveness of the sectors which would have been relatively efficient under distortion- free indirect tax regime. Further, there is lack of full offsets of taxes loaded on to the fob export prices. Efficient allocation of productive resources and providing full tax offsets is expected to result in gains for GDP, returns to the factors of production and exports of the economy. Implementation of a comprehensive goods and services tax (GST) is expected, ceteris paribus, to provide gains in Indiaâ€™s GDP somewhere within a range of 0.9 to 1.7 per cent. It is expected that the real returns to the factors of production would go up. [Working Paper No. 103]
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brown, Drusilla K. & Deardorff, Alan V. & Stern, Robert M., 1996. "Computational Analysis of the Economic Effects of an East Asian Preferential Trading Bloc," Journal of the Japanese and International Economies, Elsevier, vol. 10(1), pages 37-70, March.
- repec:cup:cbooks:9780521877657 is not listed on IDEAS
- repec:ttp:iibwps:15 is not listed on IDEAS
- repec:ttp:itpwps:0607 is not listed on IDEAS
- Bird, Richard M. & Mintz, Jack M. & Wilson, Thomas A., 2006. "Coordinating Federal and Provincial Sales Taxes: Lessons from the Canadian Experience," National Tax Journal, National Tax Association, vol. 59(4), pages 889-903, December.
When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:2764. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Padma Prakash)
If references are entirely missing, you can add them using this form.