TAX POLICY AND REVENUE GENERATION: STRATEGIES AND

CHALLENGES AND IMPLICATIONS FOR ECONOMIC

DEVELOPMENT

FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT

[An assignment submitted to Himachal Pradesh National Law University, Shimla]

COURSE INCHARAGE: Dr. Esha Sharma. NAME: Vitasta Sharma

BBALLB (4th Semester)

En. No. : 1120220075

HIMACHAL PRADESH NATIONAL LAW UNIVERSITY, SHIMLA

16 MILE, SHIMLA-MANDI NATIONAL HIGHWAY, GHANDAL

DISTRICT SHIMLA, HIMACHAL PRADESH-171014

Ph. 0177-2779802, 0177-2779803, Fax: 0177-2779802

 Website: http://hpnlu.ac.in

DECLARATION
I, Vitasta Sharma, am delighted to submit the original manuscript of the assignment titled

“tax policy and revenue generation: strategies and challenges and implications for economic
development”.

I hereby declare that the manuscript is an original document and an unpublished work by me.
Due credit has been given to the authors whose content has been used for the purpose of
research. I agree to deal with any issue related to this document, including copyright, defamation
or contempt and agree to suffer the loss, if any, caused by violating any rights.
 ACKNOWLEDGEMENTS
I am using this opportunity to thank all those who helped me throughout the completion of the
assignment.

I would to thank my teacher Dr. Esha Sharma, for giving me this opportunity to work on this
assignment which helped me to do a lot of research and helped me learn new things. I got to
know a lot about the topic and various details associated with it. By working on this assignment,
I got to understand the Topic of tax policies
 INTRODUCTION
Taxation is the only realistic way to raise the money needed to pay government expenditure on
the products and services that the majority of us require, at least until someone comes up with a
better solution. However, establishing a just and effective tax structure is not easy, especially for
emerging nations that wish to join the global economy. The ideal tax structure in these nations
would provide necessary revenue without requiring the government to borrow excessive amounts
of money, discourage economic activity, and not significantly differ from the tax structures in
other nations.
Developing nations have significant obstacles in their efforts to implement effective tax systems.
First, the majority of workers in these nations are usually working in tiny, unofficial businesses
or in agriculture. Their wages are variable since they are rarely paid a regular, fixed wage; many
are paid cash, "off the books." For this reason, figuring out the base of an income tax is
challenging. Additionally, most workers in these nations do not spend their money at major chain
stores that maintain precise records of sales and inventory. Because of this, contemporary
revenue-raising strategies like income and consumption taxes are less effective in these
economies, and there is almost no chance that the government will impose high tax rates.
thoroughly.

I also extend my sincere thanks to the Vice Chancellor of Himachal Pradesh National Law
University, Prof. Dr. Chanchal Kumar Singh for making resources available in order to complete
this assignment. I would like to thank the supportive staff at the Himachal Pradesh National Law
University, who gave me the permission and assistance in accessing the equipment required for
the successful completion of the assignment. This assignment could never have been possible
without the support of everyone who has helped me throughout. I would like to extend gratitude
to my parents and friends who guided me throughout the completion of the assignment
 TABLE OF CONTENTS

Cover Page …………………………………………………………………………1