Setting Tax Targets: An Experiment for Government of Bihar

Chirashree Das Gupta

30 April 2011

2

min read

Notes from the Field

IGC Research on India

Explainers

The project was conducted on the request of Principal Secretary, Department of Commercial Taxes, Bihar. The main aim of the project was to understand what needs to be done to set district-wise commercial tax targets for FY 2011-12 in Bihar based on economic rationale to replace the current ad-hoc target-setting. The results demonstrate that the 'growth effect' is limited in the overall structure of the tax base of Bihar but it can correct the regional skew.

Institute of Economic Growth

Chirashree Das Gupta

Jawaharlal Nehru University

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