Journal Press India^®

The domain of taxation continues to reflect the evolving economic, social, and political priorities of any nation. A comprehensive deliberation is therefore inevitable to bring in any change in the tax administration. Policy makers, professionals, and academics will have to play a critical role in addressing this ever evolving and dynamic domain area in order to leverage the benefits of taxation for various stakeholders to the hilt. Underscoring the rationale of taxation and its impact on various aspects the current issue of VISION incorporates research articles on topical issues like impact of tax incentives on FDI in India, Fiscal Federalism and Social Sector in India, Impact of GST on Tourism Industry, and challenges and benefits of GST implementation for startups in India.

An intriguing paper by Arjuna Kumar Maharana, Shyama Charan Acharya and Priyabrata Panda examines the impact of ruling parties on the corporate tax revenue of India. The paper employs a paired t-test to compare corporate tax collection for the eight years of both the UPA government (2004-05 to 2011-12) and the NDA government (2014-15 to 2021-22). The findings of the study suggest that there is a significant difference in the tax collections between these two periods, indicating that ruling political parties do have an impact on corporate tax revenue. However, when the growth rate is considered, the difference is found to be insignificant. A similar observation is found for the number of corporate taxpayers as well.  The study is expected to be helpful for policymakers, economists, and citizens in fostering informed decision-making to enhance fiscal sustainability in India.

Rajkumar Singh and Rohit Bharti in their paper titled “Influence of Demographic Responses on Intention to Engage in Tax Evasion” examines the relationship that exists between demographic response and individual taxpayers in select districts of Uttar Pradesh of India and its influence on their intentions to evade taxes. Using a structured questionnaire, the author collects and examines data from 463 taxpayers using the exploratory factor and multivariate analyses. The findings revealed that the demographic response analysed including gender, age, nationality, education/qualifications, occupation, and income level, in most cases, held statistically significant relationships with the incidence of tax evasion. The study also provides valuable perspectives for crafting focused approaches to counteract tax avoidance, augmenting tax adherence and income, strengthening the rapport between taxpayers and the government, and promoting socio-economic advancement by elevating transparency and accountability.

A topical study authored by Kiran Badoni and Ajay Daimari examines the impact of the Goods and Services Tax (GST) on the tourism industry. The study analyses various travel subsectors in terms of GST rates, their effects, and GST’s role in shaping tourist behaviour, such as spending patterns and the choice of services. The author using convenience sampling selects Mussoorie for this study due to its year-round tourism. Data from ten 5-star hotels and 60 tourists (30 male, 30 female) were collected via interviews, bills, and secondary sources. Data analysis was facilitated through the use of descriptive statistics and content analysis. The study finds that GST streamlined tax structures, reduced evasion, and facilitated travel, though it posed compliance challenges due to the seasonality of tourism. The study also highlights GST’s positive impact on tax simplification, compliance, and transparency.

The paper by Sagar Sharma and Swami Prasad Saxena delves into the critical issue of Fiscal Federalism and Social Sector in India. The paper critically evaluates the historical trajectories, current dynamics, and government focus on social sector in India. The study finds that the government could not devolve the recommended share of net proceed of central taxes to states, but the difference in actual devolution of central taxes differs from recommended share of the net proceeds of central taxes during a period from 2010-11 to 2022-23 is statistically insignificant. The study also observes a notable decrease in the proportion of total expenditure allocated to social services after abolition of Planning Commission and subsequent creation of NITI Aayog.

A pertinent issue related to Long-term impact of tax incentives on FDI in India: A Sectoral Analysis has been evaluated by Vikas Kumar where the author using a quantitative research design examines the sector-specific tax incentives and FDI inflows in India. Precisely, the author examines the manufacturing, technology, and services sectors for the period from 2000 to 2020. The study finds that tax holidays, R&D incentives, and BPO tax exemptions significantly influence FDI, with the technology and services sectors showing the greatest effects. The technology sector demonstrated the highest correlation with tax incentives, while the manufacturing sector showed more moderate impacts, suggesting the need for infrastructure and labour market reforms. Based on these findings, the paper recommends extending tax benefits for R&D and digital infrastructure in technology and introducing targeted incentives for capital-intensive industries in manufacturing. The study also highlights areas for future research, including the role of global economic factors and political stability.

A paper by Supreet Oberoi, Navita Roy, Prasad Vijay Bhat and Bhagyahri Sahebrao Patil examines India’s Vivad Se Vishwas (VSV) scheme as an innovative approach to tax dispute resolution, analysing its design, implementation, and outcomes via quantitative analysis of government data and qualitative assessment of policies. The study investigates how blending elements of tax amnesties with judicial dispute resolution addresses the persistent challenge of tax litigation in developing economies. By comparing the scheme’s two iterations (2020 and 2024) and benchmarking against international counterparts, the research highlights India’s distinctive approach to reducing case backlogs while ensuring revenue recovery. The analysis reveals critical insights about the scheme’s operational framework, including its tiered settlement structure, while identifying implementation challenges that emerged during execution. The paper contributes to broader theoretical discussions about policy innovation in tax administration, particularly the balance between immediate dispute resolution and long-term systemic reforms. These findings offer valuable lessons for policymakers designing similar interventions in jurisdictions facing comparable tax litigation burdens.

Another intriguing paper on a very topical issue has been authored by Anushka Singh, Kopal Goyal and Nidha Mohammed. Their study examines the challenges and benefits of GST implementation for Startups in India. Using the primary and secondary data, the study reveals while some aspects, like delayed tax refunds and stricter compliance rules, pose a challenge, there are notable advantages like the reduction in the cascading effects of tax and a more streamlined tax filing process under the GST regime. The research paper also suggests ways to improve the entire GST compliance process for startups to enable their growth and ease of doing business in India.

The current issue of VISION is dedicated to disseminating a wide variety of topical taxation issues and stimulating pertinent discussion on all these critical areas so as to provide useful insights for fiscal policy making. We hope our readers will find it interesting.

Dr. Sameer Lama

Editor-in-Chief