Tax buoyancy is expressed as :
Where, \(\rm E^b_{TY}\) = Buoyancy of tax revenue to income
Tb = Total Tax revenue
∆Tb = Change in total tax revenue
Y = Income
∆Y = Change in income
1
\(\rm E^b_{TY}=\frac{\Delta T^b}{\Delta Y}\times\frac{Y}{T^b}\)
2
\(\rm E^b_{TY}=\frac{\Delta Y}{\Delta T^b}\times\frac{T^b}{Y}\)
3
\(\rm E^b_{TY}=\frac{\Delta Y}{\Delta T^b}\div\frac{T^b}{Y}\)
4
\(\rm E^b_{TY}=\frac{\Delta T^b}{\Delta Y}\div\frac{Y}{T^b}\)