Explain the relationship between changes in the economic structure of direct tax revenues!
For developing and emerging economies, a sufficient amount of tax revenues are a necessity for a smooth and efficient functioning of the economy, at both the national and sub-national levels. Also, tax collection and it's structure creates distortionary impacts through the instrument of tax burden. Thus, tax having both the positive as well as negative impacts has made the tax-growth relationship more complex, as its verified that the structure of taxation surely affects the development and efficiency of an economy. Therefore, policy makers and economists are quite concerned about the relationship between tax structure and growth performance.
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