ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Basis of the Japanese Miracle-Lessons for India

be the tax base and what should be the tax rate for this generalised tax? I suggest that the tax base be taken as value of output largely on the ground that it is administratively easier and quicker to collect these data from the existing published sources and no recourse to fresh collection is necessary. The suggested tax base would lead to the so-called "cascade effect". That is, since the material-producing firm will have paid a tax, the firm consuming these commodities would pay a tax on a base which is enlarged as a result of the tax already collected 611 raw materials. The tax-effect thus would discriminate against final goods manufacturing firms, whose raw material costs form a greater proportion of total costs than the rest.

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