In any nation, mobilizing resources through tax reforms serves the twin purpose of having a rational structure and generating higher resources in an equitable and efficient manner. While one-shot tax reforms were attempted in India during the 1990s, a thorough review of the country’s tax system is essential to customize it for a competitive open economy and to have a unified Indian market. Recognizing the continuous need for tax restructuring in order to strengthen the Indian economy, this study highlights the need for second generation reforms. It evaluates the structure and operations of existing taxes levied both by the central and the state governments. It presents estimates of growth rate, buoyancy, and tax effort, and analyses the causes for low tax–GDP ratio in India as compared to other equi-level countries. The authors also suggest policy imperatives for reforms, taking into account taxpayer conveniences and client services, and examine important initiatives such as upgrading the existing management information system (MIS) for tax administration, the introduction of a Direct Tax Code and a Goods and Services Tax. Analysing the structure and the governance of taxes, this handbook presents a comprehensive review of the contemporary issues in Indian tax policy and administration. List of Tables, Figures, and Boxes Preface List of Abbreviations The Tax System of India: An Overview Fiscal Significance of Taxes Taxes on International Trade Union Taxes on Income and Property Central Domestic Trade Taxes State Taxes on Income and Property States’ Domestic Trade Taxes Local Taxes Need for Further Reforms References Index About the Authors Key Features The book provides an overview of the developments in the Indian tax system during post-reform period It analyses the forthcoming, Direct Tax code and the Goods and Services Tax It provides estimates of tax revenue’s growth rate and buoyancy and tax effort.
