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This paper analyzes the relationship between GDP growth and tax revenue in Jamaica from March 1998 to December 2010, focusing on the buoyancy and elasticity of the tax system using the Divisia Index approach. It finds that discretionary tax measures have increased revenues, but the tax system is inelastic to GDP growth, indicating limited responsiveness to the tax base. The study aims to inform fiscal policy and assess the effectiveness of past government measures in enhancing revenue generation.

Author

AnsumanNath

Language

EN