Explain the major failures of Economic Reforms in fiscal policy

d.eandeconomicreform
cbse

#1

In the post-reform period, there has been fall in tax revenue. This was due of following reasons :
(i) The tax reductions in the reform period aimed at yielding large revenue and to curb tax eva¬sions which have not resulted an increase in tax revenue for the government.
(ii) The reform policies involving tariff reduction have curtailed the scope of raising revenue through customs duties.
(iii) To attract foreign investment, tax incentives were provided to foreign investors which further reduced the scope for raising tax revenues.