Production responses and tax evasion with limited State capacity: Evidence from major reform in India

  • Blog Post Date 31 October, 2017
  • IGC Research on India
  • Print Page
Author Image

David Agrawal

University of Kentucky

Author Image

Laura Zimmermann

University of Georgia

Although VAT eliminates the double taxation of inputs of the retail sales system, which enhances growth, it may increase the number of firms in the informal sector. This makes it very important, from a policy perspective, to understand the impacts of VAT adoption. Currently, there are no studies on the adoption of VAT in developing countries. This project asks: what is the effect of switching from a retail sales tax to a VAT in India - a country with limited tax capacity and a large informal economy?

Read More

No comments yet
Join the conversation
Captcha Captcha Reload

Comments will be held for moderation. Your contact information will not be made public.

Sign up to our newsletter