Home > Publications > Working Papers > Tax System Reform in India

Tax System Reform in India

Working Paper #233

Kavita Rao, Govinda Rao

Paper  232kb pdf

Many developing countries have embarked on tax reforms in recent years. Such reforms were motivated both by local factors as well as by rapid internationalization of economic activities. The need to correct fiscal imbalances and the transition from a centralized plan to a market economy were the important local factors hastening tax reforms. Difficulties in compressing expenditures necessitated that tax system reform take an important role in fiscal adjustment strategy. The transition from plan to market required the substitution of administered prices with market determined prices, the replacement of physical controls with financial controls, and the substitution of public enterprise profits with tax revenues.

About the Authors

Kavita Rao

Govinda M. Rao
National Institute of Public Finance and Policy, India

Publication Information

Type Working Paper
Program Tax
Posted 10/01/09
Download 232kb pdf