Tax buoyancy

Buoyancy coefficient of income tax in India during 1997-98 to 2007-08 (Source:Compiled from reports of Comptroller and Auditor General of India for relevant years)

Tax buoyancy is an indicator to measure efficiency & responsiveness of revenue mobilization in response to growth in the Gross domestic product or National income.[1] A tax is said to be buoyant if the tax revenues increase more than proportionately in response to a rise in national income or output.

Usually, tax elasticity is considered a better indicator to measure tax responsiveness.[2]

See also

References

  1. ↑ "Growth of Income Tax Revenue in India". Retrieved 19 November 2012.
  2. ↑ Jane H. Leuthold and Tchetche N'Guessan. "Tax buoyancy". Tax buoyancy vs. elasticity in a developing economy. University of Illinois at Urbana-champaign. Retrieved 19 November 2012.