An Analysis of Recent Tax Reforms in India

摘要

Tax reforms in India have primarily been adopted as part of the structural adjustment programmes. This provides us with an opportunity to take care of the deficiencies in the tax system, discussed and analysed by various studies and the committees during the last two decades. Taking this opportunity, a beginning has been made, on the basis of the guidelines from the recent Tax Reforms Committee. Reforms have been attempted in personal and corporation income tax as well as the customs and UEDs, which are all levied by the centre. However, the pace of the reforms has been erratic and requires a long-term comprehensive approach. On the part of the state taxes there has been no reform at all. Since the states raise 34% of tax revenue, affecting the economy considerably, the taxes under their jurisdiction also need to be rationalized to have the full impact on growth.