BILATERAL INVESTMENT PROMOTION AND PROTECTION AGREEMENTS (BIPA)

What: Part of the Economic Reforms Programme initiated in 1991 aimed at promoting investments on reciprocal basic (bilateral).

More: Government of India as on July 2012 has signed BIPAs with 82 countries out of which 72 BIPAs have already come into force and the remaining agreements are in the process of being enforced.

Tax Administration Reform Commission (TARC)

• Objective of Commission: To revisit tax laws and recommend measures for putting in place a stable tax administration.
• Headed By: Parthasarathi Shome (Chairman)
• Who Parthasarathi Shome? : Advisor, Union Finance Minister, Ministry of Finance

Click here to read all the provisions (Govt Document)

India's tax-to-GDP ratio one of the lowest

At 15.5 per cent, India has one of the lowest tax-to-gross domestic product (GDP) ratios. India has around 35 million taxpayers. Among G20 countries, India had the third-lowest tax base, before Mexico and Indonesia. The property tax-to-GDP ratio in India is only 0.48 per cent. France and the UK, it is 4.3 per cent and 4.21 per cent, respectively. For China, it is 1.7 per cent. Wealth tax in India is only 0.007 per cent of GDP, while it is 0.89 per cent in France.

In 2011-12, the tax-GDP ratio stood at 5.5 per cent for direct taxes and 4.4 per cent for indirect taxes.

Definition Tax-to-GDP ratio: 

This ratio is the total government tax collections divided by the country's GDP. Some countries, like Sweden, have a high tax-to-GDP ratio (as high as 54%). Other countries, like India, have a low ratio. When tax revenues grow at a slower rate than the GDP of a country, the tax-to-GDP ratio drops. Taxes paid by individuals and corporations often account for the majority of tax receipts, especially in developed countries.

Customs and duties paid by users of goods and services also make up a portion of tax receipts. (Investopedia)