Tax Systems and Economic Growth in China and India
https://doi.org/10.26794/1999-849X-2023-16-5-114-124
Abstract
The subject of the study is the main directions of economic growth in China and India, whose economies have been rapidly developing over the past few years under the influence of the use of tax instruments that indirectly contribute to such progress.
The objectives of the work are to identify, through the prism of taxation, the drivers of economic growth in China and India and to establish tax instruments that contribute to this progress and vectors of their impact. It has been demonstrated that the tax systems of China and India are specifically set up to stimulate the support of industrial policy, the expansion of production capital, the development of the sphere of servants and trade and the volume of their exports, consumer demand. High-tech industries, the financial sector, strategic infrastructure projects, digital technologies, and spatial development of countries are stimulated through tax instruments.
It is concluded that the main tax instruments in rapidly growing economies are the gradual transfer of the tax burden to consumption, the provision of benefits to investors, the establishment of reduced tax rates, the presence of «internal offshore», the application of international tax treaties, the absence of excessive tax control. Direct taxes on the income of foreign companies from «digital» services and products are appropriate to equalize the competitive conditions of resident companies.
About the Author
L. V. Polezharova
Financial University
Russian Federation
Russian Federation
Ludmila V. Polezharova — Dr. Sci. (Econ.), Assoc. Prof.; Department of Taxes and Tax Administration, Advisor to the State Civil Service of the Russian Federation, 1st Class, Honorary Employee of the Ministry of Taxes and Duties of the Russian Federation, member of the International Tax Association IFA
Moscow
References
1. Mozias P. M. Structural shifts in the Chinese economy. (Review). Social and human sciences. Domestic and foreign literature. Ser. 19: Vostokovedeniye i afrikanistika = Oriental and African studies. 2021;(4):112–143. (In Russ.). DOI: 10.31249/rva/2021.04.09
2. Gurnak A. V., Nazarova N. A. Tax incentives for economic growth in Russia: problems and prospects. Nalogi i nalogooblozheniye. = Taxes and taxation. 2023;(1):1–16. (In Russ.). DOI: 10.7256/2454–065X.2023.1.39483
3. Shaitura S. V., Zharov V. G., Feoktistova V. M., Ordov K. V., Taranenko E. A., Illarionova E. A. The service sector in the Chinese economy. Vestnik Kurskoy gosudarstvennoy sel’skokhozyaystvennoy akademii. = Bulletin of the Kursk State Agricultural Academy. 2021;(3):100–109. (In Russ.). URL: https://cyberleninka.ru/article/n/sfera-uslug-v-ekonomike-kitaya.
4. Wang Yuan, Kovalev M. Features and main stages of the formation of China’s digital economy. Nauka i innovatsii. = Science and innovation. 2020;(8):39–43. (In Russ.). DOI: 10.29235/1818–9857–2020–8–39–43
5. Kosenkova Yu. Yu. Relationship between the model of the tax system and the stage of economic development of the state on the example of China. Voprosy regional’noy ekonomiki. = Issues of regional economy. 2020;(2):182–189. (In Russ.).
6. Ryakhovsky D. I., Balakin M. S. Analysis of the influence of the level of tax burden on economic growth: theoretical and empirical aspects. Ekonomika ustoychivogo razvitiya. = Economics of sustainable development. 2022;(3):119–122. (In Russ.). DOI: 10.37124/20799136_2022_3_51_119
7. Vutyanshin R. R., Makarova A. V., Strogova A. A. Characteristics of the Chinese tax system and its features. Mezhdunarodnyy zhurnal gumanitarnykh i yestestvennykh nauk. = International Journal of the Humanities and Natural Sciences. 2022;10(4):69–72. (In Russ.). DOI:10.24412/2500–1000–2022–10–4–69–72
8. Polezharova L. V., Berberov A. B. Taxation of international capital movements in the context of factors of investment strategies of companies: the experience of developing countries. Ekonomika. Nalogi. Pravo. = Economics, taxes & law. 2019;12(4):132–142. (In Russ.). DOI: 10.26794/1999–849X 2019–12–4–132–142
9. Bogachev S. V. Features of territorial tax incentives for accelerating economic development. Finansy i kredit. = Finance and credit. 2022;28(12):2681–2702. (In Russ.). DOI: 10.24891/fc.28.12.2681
10. Pototskaya T. I. India: moving forward?! Pskovskiy regionologicheskiy zhurnal. = Pskov regional journal. 2021;46(2):149–154. (In Russ.). DOI: 10.37490/S 221979310013947
11. Yustratova I. L., Zalygina S. K.I. Technological potential of India. Materials of the All-Russian Scientific and Practical Conference “Science and Society”. Autonomous non-profit organization of additional professional education “Siberian Institute of Practical Psychology, Pedagogy and Social Work”. 2022. № XIX:213–220. (In Russ.). DOI 10.38163/978–5–6046740–7–9_2022_213
12. Goncharenko L. I., Gurnak A. V. Problems and prospects for the development of the Indian tax system: industrial context. Ekonomika promyshlennosti. = Economics of industry. 2016;74(2):17–32. (In Russ.).
13. Eremkin M. A. Legal aspects of e-commerce taxation regulation: Experience of India. Nalogi i nalogooblozheniye. = Taxes and taxation. 2019;(12):43–52. (In Russ.). DOI: 10.7256/2454–065X.2019.12.31757
14. Ojha Anchal, Chouriya Ishika, Anute Nilesh. Impact of indirect tax reforms in India. Journal of Accounting Research, Business and Finance Management. 2022;3(2):1–8. DOI: 10.46610/JARBFM.2022.v03i02.001
15. Tsvetkova N. N. Development of the IT services sector in India and the digital India strategy. Vostochnaya analitika. = Eastern analytics. 2021;(4):43–61. (In Russ.). DOI: 10.31696/2227–5568–2021–04–043–061
16. Dalio Ray. Principles of changing the world order. Moscow: MIF; 2022. 528 p. (In Russ.).
Review
For citations:
Polezharova L.V. Tax Systems and Economic Growth in China and India. Economics, taxes & law. 2023;16(5):114-124. (In Russ.) https://doi.org/10.26794/1999-849X-2023-16-5-114-124
Views:
14
Email this article 