ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A

Elasticity of Non-Corporate Income Tax in India

Elasticity of Non-Corporate Income Tax in India Anupam Gupta AMARESH BAGCHI and M Govinda Rao have written an interesting paper on a very important issue.1 If elasticity of non-corporate income tax was fairly high, greater reliance could be placed on non-corporate income tax for raising revenue and the question of equity in the tax incidence could be more easily dealt with. A low elasticity of income tax compels the exchequer to depend more on commodity taxes. A consumption lax is essentially regressive and the classification of goods into essential and luxury items remains controversial. A consumption tax is more likely to add to inflationary forces than an income tax. For all these and many mote reasons, one would consider worthwhile examination of the scope of raising the elasticity of non-corporate income tax, I am grateful to the authors for dealing with my earlier workon this problem at length. Their conclusion is different from mine. But I feel this difference arises from one's view about what 'he tax administration is likely to achieve in the future.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top