The Measurement of Tax Elasticity in India: A Time Series Approach

Acharya, Hem (2011): The Measurement of Tax Elasticity in India: A Time Series Approach.

Abstract

Revenue generation is an important goal of tax reform. The built-in responsiveness of revenues to changes in income, tax elasticity, provides very critical information for tax policy formulation. This paper utilises a time series approach to empirically estimate tax elasticities for India for the period 1991-2010. Tax elasticities are computed for income, turnover, excise, import and total taxes for the post-reform period. The elasticity coefficients reveal a low responsiveness of taxes to income growth and the value being less than unity in most of the cases.

• Item Type: MPRA Paper
• Language: English
• Keywords: Tax,Indian Tax, Tax Elasticity,
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies

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