Ad Here  
Talk your way and land in a job Education a cause of concern Mexico opens Consulate in Chennai A praiseworthy peer recognition Chennai soon to get an Aerospace Park Colourful welcome at the Saidapet station Medical miracle! Indian of the Year Two friends trigger a change North Chennai booms Ennore Port excels Read before you buy... An industry institution link… SGRI – a global research centre for building materials A new technique to treat dry sewage Outlays and outcome – the long gap Black outs will be knocked out 60 years of cultural and economic ties Hawker’s paradise gets a permanent place The sweet tooth of the city Thrills for the holiday season City Corner Planning the right energy Metro chugs the green way State VAT leads to inflation: a study Chennai gets its Imax When the crowd will miss the roar Apollo targets a third of CV tyre market Meters return to the metro Technologists to rescue The 20-year itch of Hindujas ends International conference on saving energy, environment Missing, but not missing the top spot Murugappas-focus on consolidation A feast for book worms Bewailing monsoons the new fad Million landmark and Rs. 200 crore influx by Yamaha It’s so cool! The sweet killer India’s first 3D Museum Green energy, not really green? I know nothing else but cinema... Overflowing garbage Paranjoy on crony capitalism Google street view’s India competitor Prithika Yashini takes charge... Raj Bhavan opened the gates for public Tamil Nadu Premier League launched Doing business is not so easy in Chennai Star studded city City Corner A skinny affair Technology handshakes with sanitation It is not only your noodle... Keep in touch, anytime anywhere Yes, you are safe! This dabba has a cure for all your ailments Metro chugs through the city The auto gets a remake Chennai Metro looking for revival Car-free Bessy Chennai airport to become solar-powered From trash land to tourist spot Chennai, the noisiest city Metro mania Pocket Therapist finds mention in Forbes Aviation sector to grow three times... Sathyabhamasat propels ahead The worst is yet to come CMRL takes off till airport Reality Check Chennai to Bengaluru as quick as pizza delivery The underground don zips through Perplexing communications Chennai teachers rank low Safe Trac-keeps track on your safety Chennaites lose 7 crore to debit card frauds How to roast 45 human beings alive Water wars begin Need for an integrated approach to medicine Frontier Mediville attracts Japanese investments Cricket comes calling to Chennai Chennai Silks in flames Online approval of layout plans K7’s Entrepreneurial Odyssey City Corner-June Is Chennai now the accident capital? When Marina became the Tahrir Square Must visit of 2014 Indian media-operators of democracy Maruti Suzuki wins NIQR award Engineering colleges lose lustre The sunshine and the shadow side of this digital era Book your water tanker Water woes Chevrolet Sail U-VA Launched Presto! Bravo! When Chennai became Venice The curious case of Evgenii Berdnikov Working space for women by woman City Corner - Chennai 377 yet young Kollywood’s Mahabharatha Coimbatore backs up for Chennai Self-sufficiency in dredging... Building highs and lows Yamaha in the news Hey Chitti! please take my order Arnold visits Chennai He made Ranganathan Street so crowded... Realty bytes A sweet marketing splash by Pattappas India’s first online-only bicycle brand Vanakkam Chennaiyin FC A budget that butted into deficit Know the start-ups in the city Boozing and driving Force Motors’ two new SUVs TTV stumps all Tambaram tracks…. Nilam threatens the city
State VAT leads to inflation: a study

Implementation of Value Added Tax by states has led to inflation in most states. State VAT, which is in the form of replacement of Sales Tax, was first introduced in Haryana in 2003 and by 2008, nearly all states had implemented it.

On the basis of a study on State VAT and its Price Effect, K R Shanmugam, Director, Madras School of Economics said that inflation follows tax introduction but remains stable thereafter.

While the price effect of state VAT was highest in Punjab (with 2.8 per cent hike in price), it was lowest in Uttar Pradesh by a drop in price by 1.12 per cent. He said that this could be because UP was the last to introduce the state VAT, in 2008, and would have learned to keep inflation low from the experience of other states. Tamil Nadu that brought in the tax in 2007 saw an inflationary trend with price rise of 1.22 per cent. He highlighted that sales tax had not put much money in the government treasury, but the revenues from state VAT account for 70 per cent of the total.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236