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What is GST about?

This study investigates the microeconomic impact of General Sales Tax (GST) on household consumption patterns in Pakistan, focusing on indirect tax reforms. It finds that raising GST on inelastic goods, such as food and health-related expenditures, can increase tax revenue but may exacerbate social inequality among poorer households. The study recommends adopting a Value Added Tax (VAT) model for its less distortionary effects on the economy and broader tax base.

Author

shankruth

Language

EN