PMMA-10328 Is the Value Added Tax Reform in India Poverty-Improving? An Analysis of Data from Two Major States

Abstract

Abstract In the short run, economic policy change in the economy affects the income levels of different income/social groups mainly through prices of commodities they consume or income transfers. However, in many developing countries, income transfer schemes for the poor are usually constrained by the lack of information that government agencies have on the distribution of well being. This makes indirect taxation a predominant tool for social welfare policy in these countries. The problem of how to improve the design of indirect taxes and subsidies so as to meet both poverty and efficiency criteria then becomes an important element of poverty alleviation strategy. The proposed study intends to analyse the pro-poor nature of the switch from a sales tax regime to Value Added Tax (VAT) for some major states in India, by utilising the concepts of welfare and poverty dominance. The pro-poor dimension will be accommodated by studying the consumption dominance of some major commodity taxes. This will also highlight the progressivity of these taxes, inter alia (166 words).


Members

Project leader: Ajitava Raychaudhuri

Project researchers: Poulomi Roy | Sudip Kumar Sinha


Journal publication

Authors Co-Authors Title of paper Title of Economic Review Bibliographic references
Ajitava Raychaudhuri Poulomi Roy,Sudip Kumar Sinha Is Value Added Tax (VAT) Reform in India Poverty Improving? An Analysis of Data from Five Major States Indian Economic Review

(2010) Vol. 45 Issue 1 pp. 131-158


Working Papers

Title Modified Size Comments Recommendations
Is the Value Added Tax Reform in India Poverty-Improving? An Analysis of Data from Two Major States 2007-05-15 986.53KB 0 0

Policy Briefs

Title Modified Size Comments Recommendations
Is the Value Added Tax Reform in India Poverty-Improving? An Analysis of Data from Two Major States 2007-09-15 24.06KB 0 0

Final report

Title Modified Size Comments Recommendations
2006-05-27 362 KB 0 1

Proposal

Title Modified Size Comments Recommendations
2005-07-21 230 KB 0 1

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