Setting Tax Targets: An Experiment for Government of Bihar

  • Blog Post Date 30 April, 2011
  • IGC Research on India
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Pronay Sarkar

Institute of Economic Growth

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.

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