01798pab a2200169 454500008004000000100001600040245006400056260000900120300001300129362001200142520135600154650000801510650003801518650001301556700001501569773004401584180718b2003   xxu||||| |||| 00| 0 eng d  aSingh, S.B.  aIntroducing VAT in Madhya Pradesh - A quantitative analysis  c2003  ap.41-54.  aJan-Mar  aSales taxes are an important source of revenue for the states in India. While the taxes vary in their design, they are generally levied at the first point of sale within the states. Their structure is complex, irrational, and flawed from an economic efficiency perspective. They are subject to poor tax compliance, and the tax administration is weak and ineffective in enforcing proper compliance. In this article, we have analysed the important aspects of the current system like growth of revenue and its buoyancy, change in the pattern in numbers of dealers and their contribution to revenue. We have also analysed the impact of taxes on inputs and on final consumer goods. The extent of tax cascading under the present system of single stage taxation and a partial VAT on wholesalers has also been evaluated. We have concluded that the present system of commodity taxation in Madhya Pradesh is very complex, causes economic distortions and is difficult to administer and comply. Therefore, there is an urgent need to change over to a system which does not suffer from these efficiencies. Several experts who have reviewed this system have come to the conclusion that a full-fledged VAT which is fair, simple and inherently high complaint, is the only option that could address the problems of current system in a satisfactory manner. - Reproduced.  aVAT  aTaxation - India - Madhya Pradesh  aTaxation  aVyas, R.K.  aIndian Journal of Public Administration