Sen, AsthaWallace, Sally2023-02-022022-12Sen, A. & Wallace, S. 2022, 'The revenue productivity of India's subnational VAT', National Tax Journal, vol. 75, no. 4. https://doi.org/10.1086/721687.0028-0283 (print)1944-7477 (online)10.1086/721687https://repository.up.ac.za/handle/2263/89096Skepticism exists regarding the revenue potential of a subnational value-added tax (VAT). India is one of only three countries to embrace a subnational VAT, and it did so between 2003 and 2008. We analyze the impact of this historic policy reform on revenue productivity and find that implementation of the tax yields a 13 percent increase in sales tax revenue for India’s more developed states. This analysis is unique in providing empirical evidence of a revenue impact of a major tax policy reform for a subset of subnational governments in a developing country.en© 2022 National Tax Association. All rights reserved.Value added tax (VAT)Subnational indirect taxRevenue productivityIndiaPostprint Article