The study on ‘Revenue Potential for Himachal Pradesh: An Assessment and Suggestions for
Reform’ was undertaken by the National Institute of Public Finance and Policy (NIPFP) at the
request of the Department of Excise and Taxation, Government of Himachal Pr
adesh, Shimla.
Changing fiscal environment and the constantly expanding government expenditure have led the
Government of Himachal Pradesh to explore the possibilities of augmenting its revenues. In this
context, the government has commissioned this study
to address the issues of
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a) trends in the
revenue receipts of Himachal Pradesh for identifying areas of relatively weak performance in
comparison with some similar States, b) detailed study of major taxes: State VAT, State excise,
transport taxes, and c)
study of non
-
tax revenues of the States and identifying area and measures
for improving revenue performance.