Open AccessThe Relation of Indirect Tax Changes to Price Changes in Pakistan
Author(s) -
Ghulam Mohammad Radhu
Publication year - 1965
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v5i1pp.54-63
Subject(s) - excise , economics , tax incidence , indirect tax , sales tax , tax deferral , monetary economics , value added tax , international economics , agricultural economics , ad valorem tax , public economics , macroeconomics , tax reform , state income tax , gross income
This study examines the effects of indirect taxes on prices inPakistan. It is not a thorough study of the incidence of indirect taxes.It is an attempt to determine the relationship between changes inindirect tax rates and price changes. There have been several changes inthe rates of sales and excise taxes in Pakistan in the past few years.The standard rate of sales tax was increased from 10 per cent to 12.5per cent in 1960, and to 15 per cent in 1963. The rates of excises havebeen modified from time to time. It should be of great practicalinterest to see whether these taxes have been shifted to consumers orborne by producers and sellers. Since one study of the effect of importduties on domestic prices of imports has been done recently in thePakistan Institute of Development Economics |4], and further study ofthat aspect of the matter is going on, this study covers only sales andexcise taxes.