ABSTRACT
For analytical convenience the tax structure may be divided into direct, and indirect. Income tax and super tax form the first category and import duties come under the second category. The direct system formed the major instrument for increasing investment and for inducing entrepreneurs into the system, generally via tax holidays and various exemptions from income tax. In addition to custom duties, there were export duties on a number of traditional primary commodities, primarily for the purpose of inducing some form of value added processing before export. In later years, two of the most important traditional export commodities i.e. rice and cotton, were brought under State Trading Corporation. In the context of a social criterion allowing for other economic sectors to interact with it, in terms of subcontractual activities developing in the locale, one can find a positive reason for imposition of such tariffs.
