Tax devolution refers to the transfer of tax powers from central to regional or local governments. This process allows regions to collect and manage their own taxes. It aims to enhance fiscal autonomy and accountability. In India, tax devolution is significant for balancing regional disparities. It supports local governance and promotes economic development tailored to regional needs.
India’s system of sharing central tax revenues with States is once again under scrutiny. With the recommendations of the 16th Finance Commission yet to be tabled, debates around...
