Buoyancy and Income-Elasticity of State Taxes in India

The objectives of this study are (i) to present an empirical analysis of buoyancy and income-elasticity of State taxes and (ii) to examine the determinants of tax revenue explaining the variations in tax yield. The results have been presented for each tax at individual State as well as all-States level. The reference period of the study is 1960-61 to 1970-71.The first year of the study coincides with the availability of revised series of State income.