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Lessons from optimal taxation theory for the GST and beyond

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  • Sushama Murty

    (Jawaharlal Nehru University)

Abstract

This paper studies the new GST from the perspective of some key results in the theory of optimal taxation. A review of these findings and a study of their applicability to India leads us to the conclusion that, while the GST is a major overhaul and rationalisation of the existing commodity tax structure in India, to tap its full fiscal potential in meeting redistributive goals and increasing the tax-GDP ratio, major reforms are also required in the coverage and design of direct taxation (including personal income and corporate profit taxation) and direct redistributive transfers in India.Length: 21 pages

Suggested Citation

  • Sushama Murty, "undated". "Lessons from optimal taxation theory for the GST and beyond," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 17-07, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    • Handle: RePEc:ind:citdwp:17-07
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    References listed on IDEAS

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