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Evaluation of recent corporate tax reduction in India using MCDM approach
Author(s) -
Manda Subhash,
Himanshu,
Bansal Sumit K.
Publication year - 2020
Publication title -
journal of public affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.221
H-Index - 20
eISSN - 1479-1854
pISSN - 1472-3891
DOI - 10.1002/pa.2270
Subject(s) - multiple criteria decision analysis , reduction (mathematics) , economics , public economics , mathematics , operations research , geometry
The purpose of the study is to evaluate the possible impact of the recent announcement of corporate tax reduction in India using a MCDM approach, that is, AHP (Analytical Hierarchy Process). For the case study, the experts from different groups were selected. The possible outcomes of the announcement of corporate tax reduction were identified from literature and experts. Eight economic outcomes and four market outcomes of corporate tax reduction were identified. The AHP results show that the positive possible economic outcomes outweigh the negative outcomes of corporate tax reduction. Corporate tax reduction will help in enhancing India's competitiveness in the global market and the cost of doing business. The stock returns may be higher for firms with huge growth potential. However, the government needs to control increasing fiscal deficit due to loss of tax revenue.