Journal Press India®

Buoyancy and Elasticity of Tax Revenue: Measurement Techniques

Vol 1, Issue 2, July - December 2014 | Pages: 85-94 | Research Paper  

 
Article has been added to the cart.View Cart (0)
https://doi.org/10.17492/vision.v1i2.2426


Author Details ( * ) denotes Corresponding author

1. * S. M. Jawed Akhtar, Associate Professor, Department of Economics, Aligarh Muslim University, Aligarh, Uttar Pradesh, India (drsmjawed@gmail.com)

High degree of responsiveness of tax yield to changes in national income is a desirable characteristic of any tax system. If a government depends on tax revenue to finance a large part of its expenditure then it is necessary to ensure that an increasing proportion of national income flows into the public treasury as taxes. In other words, the requirement is to increase the incremental tax ratio. Computation of tax buoyancy and elasticity becomes relevant in this context. This paper explains the concepts of buoyancy and elasticity of tax revenue and describes the various methods to compute them.

Keywords

Buoyancy, Elasticity, Tax yield

  1. Bretherton, R.F. (1937). The Sensitivity of Taxes to Fluctuations of Trade. Econometrica, V.
  2. Maxwell, J.A. (1954). Fiscal Policy, Its Techniques and institutional Settings. H. Holt: New York.
  3. Mansfield, C.Y. (1972). Elasticity and buoyancy of a tax system: A method applied to Paraguay. IMF Staff Paper, 19(2): July.
  4. Prest, A.R. (1962). The sensitivity of the yield of the personal income tax in the United Kingdom. Economic Journal, 72: 576-596.
Abstract Views: 313
PDF Views: 166

Advanced Search

News/Events

Institute of Managem...

Deccan Education Society Institute of Management Development and Re...

S.B. Patil Institute...

Pimpri Chinchwad Education Trust's S.B. Patil Institute of Mana...

D. Y. Patil IMCAM, A...

D. Y. Patil Institute of Master of Computer Applications & Managem...

Vignana Jyothi Insti...

Vignana Jyothi Institute of Management International Conference on ...

Department of Commer...

Department of Commerce, Faculty of Commerce & Business, University...

Birla Institute of M...

Birla Institute of Management Technology (BIMTECH) 3rd Pritam Singh M...

OP Jindal University...

OP Jindal University, India 4th International Conference on  ...

Department of MBA, N...

Department of MBA, Narayana Engineering College Nellore International...

Vignana Jyothi Insti...

Vignana Jyothi Institute of Management Conference Proceedings,...

Online Proceedings R...

Conference Proceedings, March 2023 ISBN: 978-81-956810-6-8 ...

By continuing to use this website, you consent to the use of cookies in accordance with our Cookie Policy.