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May 08, 2011
India's inverted Tobin tax?
Last month the Government of India notified a service tax for corporate forex transactions.
Interestingly there are no such service tax for inter-bank transactions. If we assume that a much larger proportion on inter-bank transactions are proprietory/speculative (and since the Tobin tax is meant to dissuade currency speculation) this new tax is surely an inverted Tobin tax. Are there any merits in having an inverted Tobin tax?
WHAT DO YOU THINK?
Posted by amgodbole at May 8, 2011 03:57 PM
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