ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Scrutinising a New Report on Revenue Neutral Rate

New Assumptions, New Estimates

The report of the Ministry of Finance Committee, headed by the chief economic adviser, on revenue neutral rates for the goods and services tax provides a new set of estimates. Based on a different set of assumptions, the report suggests that moderate rates of tax are feasible. While this is an attractive conclusion, it is important to scrutinise the assumptions it rests on.

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