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

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.