Measuring Tax Potential-Some Clarifications

Measuring Tax Potential Some Clarifications M Govinda Rao J V M Sarma THE first report of the Ninth Finance Commission has evoked widespread interest. This is evident from the number of articles that have appeared in professional journals and newspapers in recent times. Many of these articles are of a general nature covering the entire canvas of the recommendations made by the commission for the year 1989-90. The recent article in EPW by N Krishnaji (Feburary 4), however, assumes a special significance as it concentrates on the specific issue of the approach to measuring tax potential adopted by the Ninth Finance Commission.