Economics, Econometrics and Finance
7 years ago

Tax reforms in Pakistan impact poverty differently based on tax rate changes.

Journal of Asian Economics
The poverty implications of alternative tax reforms: Results from a numerical application to Pakistan
Andrew Feltenstein, Carolina Mejía, David Newhouse, Gohar Sedrakyan

Paper Summary

The article explores how different tax reforms in Pakistan can affect poverty, shared prosperity, and inequality. By using a complex model that considers tax evasion, the researchers found that increasing sales and corporate tax rates equally can have different impacts on consumption and poverty levels. Tax evasion also plays a significant role in shaping these outcomes.

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