A Comparative Study of Tax Structure of India

With Respect To Other Countries

Dr. BP Singh
Assosiat Prof., Department of Commerce, LBS College Gonda

Abstract
In this paper I tried to study the Indian tax structure in comparison with developed and
developing countries. The comparison is done by selecting a sample of five countries and
comparing the tax structure with India in terms of parameters such as gdp percentage, tax rate,
and time to tax compliance, no tax payment, ease of tax payment, and ease of use and so on. In
most of these parameters it has been established that the Indian tax structure is lagging behind
other selected countries.

Introduction

Tax is a financial levy or other levy levied by a state or a functionally equivalent person on a
taxpayer (a person or a company) to finance various government expenditures. (Wikipedia).
Taxes the structure of each country consists of a series of rules and laws set by a specific country
for tax collection by the public. The primary goal of tax collection is to increase government
revenue for development and welfare programs in the country. The secondary objective is to
raise income tax, improve the economic conditions of the general public, encourage the
production and distribution of basic demand products, suppress production and harmful products,
impede import trade and maintain economic equality. National industrial protection (Bhim
Chimoriya). The growth and development of the country is highly dependent on the tax structure
it uses. High tax rates and complex detergents inhibit growth. Complex tax systems also lead to
tax avoidance and thus to a parallel economy. Complex tax systems are also responsible for the
ease of doing business. Countries with simplified tax systems have led to the growth and
development of specific countries and to the facilitation of business activities.

Here is a summary of the tax structure for the selected country.

India: - India has a three-tier tax structure that is taxed as central government, state government
and municipal companies. In India, the Constitution gives you the right to levy taxes. There is a
clear distinction in the Constitution on taxes levied by central and provincial governments. Thus,
in accordance with the Constitution, all taxes in India are supported by their respective
corresponding laws adopted by the Congress or the State Legislative Council. In India, taxes are
classified as direct taxes and indirect taxes.

United States: - The United States has self-government and local authorities. It is a federal
republic. US taxes are levied by both the state and the local authorities. Taxes include taxes on
income, property, sales, capital gains, dividends, assets, gifts and income. The cleaning system in

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the United States is the progressive tax system. The tax depends on the income of the individual.
The dependence on direct taxes is greater than indirect taxes.

United Kingdom: - In the UK taxes are levied at two levels: central and local. Income tax, VAT,
corporation tax and fuel tariff are imposed by the central government. Business rates, municipal
taxes, road parking costs, etc. are collected by the local authorities. Local authorities also receive
subsidies from central government funds. UK taxation is simple and easy to understand with
high administrative efficiency.

South Africa: - Like the United Kingdom, the tax in South Africa is levied at two levels: central
and local. The South African tax office (SARS) is tax collection on behalf of the State. Income
tax, corporation tax, value added tax and fuel tax are levied by the central government, but local
authorities levy local government prices and central government funds.

Mexico: - In Mexico, income tax, corporation tax and alternative minimum tax are levied. The
income tax in Mexico is gradually increasing from 1.92% to 30%. The corporate tax rate is 30%.
The minimum replacement tax is 17.5%. Adds capital gains to the regular income and imposes a
regular income tax.

China: - China, a communist country that follows the principles of socialism, is largely
dependent on taxes on income. Taxes are an important part of China's macroeconomic policies
and have a significant impact on the socio-economic conditions in China. Through the 1994
reform, China has introduced a systematic tax system. There are currently 26 types of taxes in
China. Depending on its nature, it can be divided into eight categories: sales tax, income tax,
housing tax, special tax, property tax, behavioral tax, agricultural tax and customs

References: -

1. Dr. Banamali Nath (2017), “Goods and services tax: A milestone in Indian
economy”, International Journal of Applied Research, Vol.3 (3), Pg. No. 699-702.
2. Mrs. Rizwana Begum and Dr. K. S. Sarala (2017), “Brand Positioning of Men
Apparel Brands in Karnataka”, Sahyadri journal of management, Volume I, Issue 1,
pg.No.17 – 35.
3. B. Anbuthambi1 and N. Chandrasekaran (2017) “Goods and services tax (gst) and
training for its implementation in India: a perspective”, ICTACT journal on
management studies, Vol-03, issue-02 Pg. No.511 – 514.
4. Dr. Saravanan S1, Chandra Mohan (2017),
5. “Assessment and Impact of Existing Indirect Tax to Goods and Service Tax in India”,
International Journal of Scientific Research in Computer Science, Engineering and
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623- 629.

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