THE PAKISTAN DEVELOPMENT REVIEW
The Structure of Revenue from Indirect Taxes in Pakistan
Despite the fact that Central Government indirect taxes make up approxi¬mately three-fourths of the combined revenue of the Central and Provincial Governments in Pakistan, virtually no detailed studies of these taxes and their rate structure, revenue structure, effect on prices, and effect on resource allocation, have been undertaken as yet. This paper summarizes some of the preli¬minary findings of one part of the studies on taxation now underway at the Pakistan Institute of Development Economics. A companion piece on the rate structure of these taxes appears in this issue of the Review. Further analysis is necessary, however, both in combining the results of these two studies and in bringing to bear other evidence such as price behaviour, underlying commo¬dity flows, and the impact of the various licensing systems in operation in Pakistan, before any firm conclusions about the impact of indirect taxes, ttieir elasticity, and their incidence, can be formed.