Journal Press India^®

In the ever-growing dynamic landscape of tax administration and tax policy, it is important to initiate discussions on relevant aspects of policy changes and address issues that arise consequent to changes witnessed in tax policy or administration. Some such aspects that have been explored in this issue of VISION include digitalization of tax administration, environment taxation, role of tax incentives in attracting foreign investment and tax implications of remittances.  

The paper by Vikas Kumar and Kulbhushan Chandel explores how tax incentives promote FDI in India. The study employs a descriptive research design using secondary data to examine how tax incentives provided by Indian government have led to FDI in the country. Comparative analysis with other emerging economies reveals that India’s tax incentives are competitive but need to be part of a broader, more comprehensive policy framework to maximise their impact. The study concludes with policy recommendations aimed at optimising tax incentives to enhance FDI inflows.

Rejis Sen and Partha Pratim Ghosh, in their paper on ‘Economic impact of inward and outward remittances and their tax implications’ examines how remittances influence the Indian economy and the impact of taxes on inward and outward remittances. The paper analyses existing policies and trends and brings out the welfare effects of inward and outward remittances.

In view of the growing importance of digitalization in the administration of taxation system, two papers in this issue analyse the role and impact of digitalization on different aspects of taxation. The paper by Fatma Al Zahra and Anjali O. systematically examines the taxation challenges arising from the digitalization of the economy and proposes corresponding measures for mitigation. The paper delineates the distinctive features of the digital economy and delineates the tax challenges inherent in these features. Additionally, it assesses the principal measures targeted at reshaping the international tax framework, encompassing the OECD’s Pillar One, unilateral digital services taxes, and a U.N. proposal. The other paper by M. M. Sury paper analyses the recent budgetary reforms as well as steps towards digitization of tax administration that have contributed to fiscal consolidation and fiscal prudence. The paper discusses how reforms in some of the major processes and compliance requirements and shifting to online platforms has reduced the need for taxpayers to physically visit the income tax office. In addition, interaction with taxpayers is now characterized by a spirit of trust and respect, relying more on voluntary compliance.

An interesting paper by Antony A. K. analyses whether the powers to summon under Section 70 of Central Goods and Services Tax Act, 2017 are synonymous with powers in other indirect tax statutes. The author examines whether the law regarding issue of summons remains the same even under the enactment of 2017 and whether there are violations that lead to denial of natural justice and procedural safeguards to the assessee.

A pertinent issue of environmental taxation and carbon emissions have been dealt with in the paper by Shilpi Sahi and Sameer Lama where they present a comprehensive analysis of environmental taxation in the G20 nations and examine its role in influencing carbon emission levels across G20 countries. Employing Johansen co-integration test, the authors find that environment taxation is an important variable to manage CO₂ emissions and to focus on sustainable growth of the nations. The study makes an important contribution to a deeper understanding of how environmental taxation can play a pivotal role in addressing carbon emissions and advancing global efforts to combat climate change.

The paper by Abhilasha Patter delves into the implications of a high rate of GST being imposed on the gambling industry in India, emphasizing the impact on not only the frequency of gambling among the elite but also the tax revenues sourced from foreign visitors who contribute significantly to India’s diverse gambling offerings. The paper presents its critique while examining the dynamics of socio-economic landscape and welfare effects and stimulates a discussion on the multifaceted consequences of this recent policy change.

This issue of VISION continues in the endeavour of the journal to bring relevant issues of taxation to the fore and stimulates pertinent discussion so as to provide useful insights for fiscal policy making. We hope our readers find it interesting.

The Editorial team of VISION wishes its authors, reviewers and readers a happy, healthy and prosperous 2025!

Dr. Sameer Lama
Dr. M. M. Sury

Editors