The study provides estimates of overall incidence, as well as, the distribution and burden
of General Sales Tax across household welfare levels by applying the latest available household
consumption data. The analysis is carried out at national, regional and provincial levels;
separately for food, non-durable and durable expenditure items. Effective GST rate across
deciles of per capita expenditure and Kakwani Summary Index of tax progressivity are estimated
for the year 2010-11. Results in general, indicate proportionality of GST incidence
associated with some progressivity at the upper part of income distribution. The relative intensity
in terms of magnitudes of Kakwani Index indicates regressivity in GST on food and
progressivity on durable expenditure items. A simulation exercise is also carried out to observe
the impact of non-uniform GST rates for expenditure commodity groups on distribution
of the tax burden.