Subsidies Research Paper Example | Topics and Well Written Essays - 250 words

Subsidies - Research Paper Example It will investigate whether the tax system serves as a subsidy to the sector or not. In Pakistan there are a large number of cafes and restaurants that apply charges on the Bills. Sometimes the rates of these charges are really high which makes it difficult for the common middle class man to have a meal in such restaurants. The study will try to explore whether this tax system is making a division in the class or not and is promoting a society which supports a class system or not. One of the major reasons for investigating this area is that Pakistan is a third world country with a majority of people in the middle class. There still exist a large numbers of places where only rich people reside. These places are the ones that apply huge tax rate on the bills. The study will investigate the correlation between tax and class;whether higher tax invites higher class. Studying the tax structure has been the interest of all countries as it is linked to the development of the country. Bargain et al, (2011)reports the progressive nature of the tax structure by saying‘The tax structure in almost all the countriesis progressive’. This progressive nature of tax structures has a lot of advantages and disadvantages. Chaudhri (1965) in the research article ‘Taxation in Pakistan: A Critical Appraisal’ state the disadvantages of tax system by saying that ‘whatever money is collected is looted by the rulers or spent on unnecessary luxury items’. Qualitative research methodology will be applied because it will answer ‘how’, ‘what’, ‘why’ questions. For example, what are the benefits of tax system?Why tax system is applied? How tax system benefits the industry? etc. The research will also employ Quantitative research methodology because a set of interviews and questionnaires will be prepared. These interviews and questionnaires will cover the views of the owners of different cafes and restaurants. The results will be based on their responses and