{
  "title": "The Tax System in India: Could Reform Spur Growth?",
  "publication": "IMF Working Papers, April 1, 2006",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/the-tax-system-in-india-could-reform-spur-growth-19057",
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  "summary": "This paper assesses the effects of India's tax system on growth, through the level and productivity of private investment.",
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    {
      "heading": "Summary",
      "content": "- This paper assesses the effects of India's tax system on growth through the level and productivity of private investment.\n- The paper compares India's indicators of effective tax rates and tax revenue productivity with other countries.\n- The paper finds that the most recently proposed package of reforms would improve tax productivity and lower the marginal tax burden and tax-induced distortions.\n- Caveat: firms that rely on internal sources of funds or face problems borrowing would continue to face high marginal tax rates."
    },
    {
      "heading": "Key findings on tax structure and performance",
      "content": "- The Indian tax system is characterized by:\n  - (1) a high dependence on indirect taxes,\n  - (2) low average effective tax rates and tax productivity, and\n  - (3) high marginal effective tax rates and large tax-induced distortions on investment and financing decisions.\n- Subject coverage: Consumption taxes, Corporate income tax, Income and capital gains taxes, Income tax systems, Revenue administration.\n- Keywords highlighted: excise, firm, tax burden, tax rate, VAT, WP."
    },
    {
      "heading": "Effects of proposed reforms",
      "content": "- The most recently proposed package of reforms would:\n  - improve tax productivity, and\n  - lower the marginal tax burden and tax-induced distortions.\n- Remaining limitations after reforms:\n  - Firms relying on internal funds or facing borrowing constraints would still face high marginal tax rates.\n\n---\n\n Content in this bundle\n\n- Wp0693\n  - Wp0693 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp0693 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-tax-system-in-india-could-reform-spur-growth-19057"
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    "Authors: Hélène Poirson",
    "Published: April 1, 2006",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451863536.001",
    "This paper assesses the effects of India's tax system on growth through the level and productivity of private investment.",
    "The paper compares India's indicators of effective tax rates and tax revenue productivity with other countries.",
    "The paper finds that the most recently proposed package of reforms would improve tax productivity and lower the marginal tax burden and tax-induced distortions.",
    "Caveat: firms that rely on internal sources of funds or face problems borrowing would continue to face high marginal tax rates.",
    "The Indian tax system is characterized by:",
    "Subject coverage: Consumption taxes, Corporate income tax, Income and capital gains taxes, Income tax systems, Revenue administration.",
    "Keywords highlighted: excise, firm, tax burden, tax rate, VAT, WP.",
    "The most recently proposed package of reforms would:",
    "Remaining limitations after reforms:",
    "**Wp0693**"
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