Documente Academic
Documente Profesional
Documente Cultură
Total Tax Rate % age Time to prepare and pay taxes is the time, in hours per
year, it takes to prepare, file, and pay (or withhold)
80 three major types of taxes: the corporate income tax,
70 the value added or sales tax, and labor taxes, including
60 67.8 payroll taxes and social security contributions.
50 60.6
40 51.7 Total total time taken for tax compliances in India is
43.9 40.8 again high as compared to the developed countries.
30
20 32 28.8 When we compare it with developing countries then it
10 is higher than south Africa but lower thanMexicoand
0 china. It is also lower than world average.
India USA UK South Mexico China World India needs to reduce down its tax compliance time at
Africa (Avg) the levels of developed countries in order to attract
more businesses in India
Total Tax Rate % age
No of Payments
Interpretations:-
World (Avg) 25.6
Total tax rate measures the amount of taxes and 9
Mexico 6
mandatory contributions payable by businesses after 7
accounting for allowable deductions and exemptions UK 8
as a share of commercial profits. 11
India 33
The total tax rate of India is quite high. Only china
0 10 20 30 40
exceeds Indias total tax rate amongst the selected
sample.
No of Payments
Inspite of such high tax rate, Indias Tax to GDP Ratio
is amongst the lowest. These raises severe concerns
Source:- Pwc Paying Taxes 2016
over the overall Indian Tax Policy and Administration.
Interpretations:- Interpretations:-
Tax payments by businesses are the total number of Tax has a greater impact on doing business. More is
taxes paid by businesses, including electronic filing. the tax policy simplified , higher is the ease of doing
The tax is counted as paid once a year even if business. More is the tax policy complex, lower is the
payments are more frequent. ease of doing business.
India lags behind very much when compared against This above effect can be seen here. India ranks 130 in
this indicator. India has a huge number of tax ease of doing business in Indiaamongst 189 countries.
payments i.e 33 . Whereas all other countries selected The other countries in the selected sample are very
in the sample are quite ahead with relatively very less ahead of India in this rankings. Complex Tax System
no of tax payments. Even world average is 25.6. and administration is one of the major reasons of India
These is due to the excessive number of taxes and lagging behind in ease of doing business.
multiplicity of taxes in India. India needs to cut down VII. Findings:-
on certain number of taxes or club them. Recent
happenings to bring GST to replace most of the 1) India has low Tax to Gdp Ratio
indirect taxes is one of the positive step towards 2) India also has a significantly higher Tax
clubbing of taxes. Rates as Compared to the selected sample
3) India has significantly higher time required
Reduction in no of payments of taxes will also reduce
for tax compliance as compared to developed
time for compliances of the taxes.
countries. However it is par with the
Ease of Tax Payments:- (Rank among 189 developing countries.
countries ):- 4) The total no of Tax Payments in India are
Country Rank Secured in easy of Tax very higher as compared to the countries in
Payments amongst 189 selected sample and the world average.
Countries 5) India Ranks very behind i.e 157 among 189
India 157 countries in ease of Tax Payments
6) India Ranks very behind i.e 130 among 189
USA 53
countries in ease of doing business
UK 15
South Africa 20 VIII. Conclusion & Recommendations:-
Mexico 92
After comparing India with the other developing and
China 132 developed countries on this 6 criteria, it is seen that
Source:- World Bank Data Indian tax structure lags behind on almost every
indicator. There is a strong requirement for a serious
interpretations:- review and actions from the government are needed in
India world bank survey on ease of tax payments simplifying the tax structure. A countrys economic
amongst 189 countries, India Ranks 157. These progress is hugely depend on the type of taxation
denotes how complex is Indias tax system. Other structure it adopts. India is currently encompassed
developing and developed countries selected in the with so many taxes, which is hurting the growth of the
sample were far ahead of India. industry. There is a need that both the central
governments, state governments and opposition
India needs to really simplify its Tax Administration parties should come together and work closely in
so that there will be ease of tax payments simplifying the taxation structure keeping away the
political motives.We are hopeful that the government
Ease of doing business:- (Rank among 189 will put these acts together in achieving the desired
countries ):- results.
Country Rank Secured in easy of References:-
doing business amongst
189 Countries 1 wikipedia, "Taxation in china," 2015. [Online]. Available:
India 130 https://en.wikipedia.org/wiki/Taxation_in_the_China.
2 Business Maps of India, "Tax System in India," 2015.
USA 7 [Online]. Available: http://business.mapsofindia.com/india-
UK 6 tax/system.html.
3 worldwidetax, 2015. [Online]. Available:
South Africa 73
http://www.worldwide-tax.com/history_of_tax.asp.
Mexico 38 4 R. Sinha, "An International Comparison of Tax Regimes,"
China 84 Centre for Budget and Governance Accountability, 2010.
5 M. P. Raiker, "Simplification of Tax Structure," 17 April
Source:- World Bank Data 2015. [Online]. Available:
http://www.franchiseindia.com/entrepreneur/interview/think https://en.wikipedia.org/wiki/Taxation_in_the_United_State
-tanks/supporting-organisations/Simplification-of-tax- s.
structure-is-the-need-of-the-hour-Manguirish-Pai-Raiker- 1 wikipedia, "Taxation in united kingdom," 2015. [Online].
Co-chairman-ASSOCHAM-355/. 1 Available:
6 h. poirson, "Tax System in Inda: Could reform Spur https://en.wikipedia.org/wiki/Taxation_in_the_United_King
growth," International Monetary Fund, 2006. dom.
7 J. o. a. R. Parry, "Why Tax Matters for development," 2009. 1 Wikipedia, "Taxation in south Africa," 2015. [Online].
[Online]. Available: 2 Available:
http://www.oecdobserver.org/news/archivestory.php/aid/294 https://en.wikipedia.org/wiki/Taxation_in_the_South_Africa
3/Why_tax_matters_for_development.html#sthash.vAKG5T .
0h.dpuf. 1 wikipedia, "taxation in india," 2015. [Online]. Available:
8 J. G. Gravelle, "International Corporate Tax Rate 3 https://en.wikipedia.org/wiki/Taxation_in_the_India.
Comparisons and Policy Implications," Congressional
Research Service , 2015.
9 PWC, "Worldwide Tax Summaries,"
Pricewaterhousecoopers, 2015-16.
1 wikipedia, "Taxation in United States," 2015. [Online].
0 Available: