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The Relation of Indirect Tax Changesto Price Changes in Pakistan

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  • GHULAM MOHAMMAD RADHU

    (Pakistan Institute of Development Economics.)

Abstract

This study examines the effects of indirect taxes on prices in Pakistan. It is not a thorough study of the incidence of indirect taxes. It is an attempt to determine the relationship between changes in indirect tax rates and price changes. There have been several changes in the rates of sales and excise taxes in Pakistan in the past few years. The standard rate of sales tax was increased from IO per cent to 12.5 per cent in 1960, and to 15 per cent in 1963. The rates of excises have been modified from time to time. It should be of great practical interest to see whether these taxes have been shifted to consumers or borne by producers and sellers.

Suggested Citation

  • Ghulam Mohammad Radhu, 1965. "The Relation of Indirect Tax Changesto Price Changes in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 5(1), pages 54-63.
    • Handle: RePEc:pid:journl:v:5:y:1965:i:1:p:54-63
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