ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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reforms in the US that led the way had also removed a range of deductions. What is more, as part of the assault on tax privilege, many countries introduced the system of reporting on 'tax expenditures' on a regular basis. These reports put forward estimates of revenue forgone as a result of tax concessions and are now produced by 14 OECD countries. In India, far from providing any such estimates, the budgets have even stopped mentioning the revenue effect of the various tax change proposals, a feature that was once considered an essential part of the budget exercise. Every time a concession is announced the possibility of any revenue loss is now covered up with the pious hope that better compliance wilt make up for the loss. At best only the net effect of all the changes proposed is mentioned with no reference to individual items, ruling out the testability of what is put out.

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