Do Ruling Parties Affect Corporate Tax Collection? A Study in the Indian Context

Mr. Arjuna Kumar Maharana; Prof. Shyama Charan Acharya; Dr. Priyabrata Panda

doi:https://doi.org/10.17492/jpi.vision.v12i1.1212501

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Do Ruling Parties Affect Corporate Tax Collection? A Study in the Indian Context

Arjuna Kumar Maharana, Shyama Charan Acharya, Priyabrata Panda

https://doi.org/10.17492/jpi.vision.v12i1.1212501

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Author Details ( * ) denotes Corresponding author

1. * Arjuna Kumar Maharana, PhD Scholar, commerce, Gangadhar Meher University, Sambalpur, Orissa, India (arjunakumarmaharana506@gmail.com)

2. Shyama Charan Acharya, Visiting Professor, Commerce, Gangadhar Meher University, Sambalpur, Sambalpur, Orissa, India (shyamacharanacharya@gmail.com)

3. Priyabrata Panda, Assistant Professor, Commerce, Gangadhar Meher University, Sambalpur, Sambalpur, Orissa, India (pandapriyabrata@rocketmail.com)

The study aims to analyse the impact of ruling parties on the corporate tax revenue of India. The paper employs a paired t-test to compare corporate tax collection for the eight years of both the UPA government (2004-05 to 2011-12) and the NDA government (2014-15 to 2021-22). The revenue figures were adjusted with a GDP deflator to minimise the impact of inflation. The findings of the study suggest that there is a significant difference in the tax collections between these two periods, indicating that ruling political parties do have an impact on corporate tax revenue. However, when the growth rate is considered, the difference is found to be insignificant. A similar observation is found for the number of corporate taxpayers as well. The study will be helpful for policymakers, economists, and citizens in fostering informed decision-making to enhance fiscal sustainability in India.

Keywords

Corporate tax; Ruling parties; Tax revenue

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