Price Effects of Commodity Taxation

An attempt is made here to estimate the impact of the commodity tax proposals contained in the 1967-68 Budget on prices of commodities.
In tracing the price effects of commodity taxation, inter-industry relationships need to be particularly emphasised. Though taxes may be levied only on a few commodities, their impact is likely to be felt on the prices of a much larger number because of the flow of inputs and outputs among the various sectors of the economy.