Intergovernmental Fiscal Relations-Three Faces of Tax Sharing -I

Three Faces of Tax Sharing -I S Gurumurthi Tax revenue-sharing is probably the most important element of intergovernmental fiscal relations. This issue has three major dimensions, namely, tax assignment between the federal and subnational governments, vertical tax revenue-sharing between the federal and situational governments and horizontal redistribution of shared tax revenue among the subnational governments.