Sales Taxation Evolution and Reform-Lessons from Tamil Nadu

Lessons from Tamil Nadu S Gurumurthi Both the central and state governments haye embarked on a massive attempt to reform the commodity taxation regime in India, with Maharashtra and Tamil Nadu being the first states to introduce value added tax. In the last budget Tamil Nadu has introduced several changes in the regime and a long-term taxation policy which will establish a stable sales tax regime. This paper takes a critical look at the new policy.