The authors developed a simple two-period general equilibrium model to analyze the macroeconomic impact of tax policies in Pakistan. They analyze two scenarios. In scenario 1, the investment tax credit rate is increased from 15 percent to 30 percent. The new fiscal regime increases investment but also significantly increases inflation. In scenario 2, the original investment tax credit rate is retained but the statutory corporate tax rate is reduced...
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INFORMATION
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1991/06/30
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Document de travail de recherche sur les politiques
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WPS698
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1
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1
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2010/07/01
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Tax policy options to promote private capital formation in Pakistan
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investment tax credit
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