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Measurement of Taxable Capacity and Tax Efforts of Indian States


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1 Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, Haryana, India
     

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It is believed that effective tax system helps in raising revenue and it can be done by expanding the tax base. Indian state's tax system does not have any benchmark which can give an objective to government that how much tax they can exploit according to present tax rate. In this study we have tried to give benchmark to the Indian state governments to realize their taxable capacity to the maximum with the help of regression coefficient of fixed effect test and random effect test for the period of 2004-2005 to 2014-2015. The study take into account different sources of tax revenue of the states as dependent variable and its proxies which affect the capacity factors are considered as independent variables and measured the taxable capacity and tax efforts made by the Indian state governments.

Keywords

Effective Tax System, Revenue, Tax, Tax Efforts, Taxable Capacity.
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  • Measurement of Taxable Capacity and Tax Efforts of Indian States

Abstract Views: 519  |  PDF Views: 6

Authors

N. K. Bishnoi
Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, Haryana, India
Tanu Juneja
Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, Haryana, India
Satbir Singh
Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, Haryana, India

Abstract


It is believed that effective tax system helps in raising revenue and it can be done by expanding the tax base. Indian state's tax system does not have any benchmark which can give an objective to government that how much tax they can exploit according to present tax rate. In this study we have tried to give benchmark to the Indian state governments to realize their taxable capacity to the maximum with the help of regression coefficient of fixed effect test and random effect test for the period of 2004-2005 to 2014-2015. The study take into account different sources of tax revenue of the states as dependent variable and its proxies which affect the capacity factors are considered as independent variables and measured the taxable capacity and tax efforts made by the Indian state governments.

Keywords


Effective Tax System, Revenue, Tax, Tax Efforts, Taxable Capacity.

References