Redistributive Impact of GST Tax Reform: Pakistan, 1990-2001
This paper assesses the welfare impact of GST reform on Pakistani households between 1990 and 2001, a period that coincides with major GST reforms that have increased GST contribution to total tax revenue from 15 percent to 42 percent. As well as the tax burden having increased, we find that the distributional incidence has worsened; GST after-reform impact on welfare is proportional as compared to slight progressivity in the before-reform period. Our results, based on distributional characteristics developed by Feldstein (1972) and recently used by Newbery (1995), show that the welfare of the poor households has been reduced due to taxation of items such as sugar, vegetable ghee, and basic fuels, whereas rich households remain comparatively better off because most of the services remain out of GST tax net.
Volume (Year): 44 (2005)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: |
Web page: http://www.pide.org.pk
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Angus Deaton & Salman Zaidi, 2002.
"Guidelines for Constructing Consumption Aggregates for Welfare Analysis,"
World Bank Publications,
The World Bank, number 14101.
- Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
- Angus Deaton & Salman Zaidi, 1999. "Guidelines for Constructing Consumption Aggregates For Welfare Analysis," Working Papers 217, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
- Paolo Liberati, 2001. "The Distributional Effects of Indirect Tax Changes in Italy," International Tax and Public Finance, Springer, vol. 8(1), pages 27-51, January.
- Bovenberg, A.L., 1987. "Indirect taxation in developing countries : A general equilibrium approach," Other publications TiSEM adac046e-0845-4c4e-904a-5, Tilburg University, School of Economics and Management.
- Javed Hamid, 1970. "Suggested Approach to Agricultural Taxation Policy in West Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 10(4), pages 422-447.
- Ballard, Charles L. & Fullerton, Don & Shoven, John B. & Whalley, John, 2009.
"A General Equilibrium Model for Tax Policy Evaluation,"
National Bureau of Economic Research Books,
University of Chicago Press,
edition 0, number 9780226036335.
- Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "A General Equilibrium Model for Tax Policy Evaluation," NBER Books, National Bureau of Economic Research, Inc, number ball85-1, December.
- Besley, Timothy J. & Rosen, Harvey S., 1999.
"Sales Taxes and Prices: An Empirical Analysis,"
National Tax Journal,
National Tax Association, vol. 52(n. 2), pages 157-78, June.
- Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "General Equilibrium Analysis of Tax Policies," NBER Chapters, in: A General Equilibrium Model for Tax Policy Evaluation, pages 6-24 National Bureau of Economic Research, Inc.
- Mieszkowski, Peter, 1969. "Tax Incidence Theory: The Effects of Taxes on the Distribution of Income," Journal of Economic Literature, American Economic Association, vol. 7(4), pages 1103-24, December.
- McLure, Charles Jr., 1975. "General equilibrium incidence analysis : The Harberger model after ten years," Journal of Public Economics, Elsevier, vol. 4(2), pages 125-161, February.
- Ary Lars Bovenberg, 1986.
"Indirect Taxation in Developing Countries: A General Equilibrium Approach,"
IMF Working Papers
86/1, International Monetary Fund.
- A. Lans Bovenberg, 1987. "Indirect Taxation in Developing Countries: A General Equilibrium Approach," IMF Staff Papers, Palgrave Macmillan, vol. 34(2), pages 333-373, June.
- Younger, Stephen D, et al, 1999. "Tax Incidence in Madagascar: An Analysis Using Household Data," World Bank Economic Review, World Bank Group, vol. 13(2), pages 303-31, May.
- Saadia Refaqat, 2003. "Social Incidence of the General Sales Tax in Pakistan," IMF Working Papers 03/216, International Monetary Fund.
- Shahnaz Kazi, 1984. "Intersectoral Tax Burdens in Pakistan.A Critical Review of Existing Evidence and Some New Estimates," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 23(4), pages 553-572.
- Devarajan, Shantayanan & Fullerton, Don & Musgrave, Richard A., 1980. "Estimating the distribution of tax burdens : A comparison of different approaches," Journal of Public Economics, Elsevier, vol. 13(2), pages 155-182, April.
When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:44:y:2005:i:4:p:841-862. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.