Reliance on regressive indirect taxes, a feature of Pakistan’s tax structure, primarily leads to which economic outcome?

💡 Explanation:

Indirect taxes (such as Sales Tax and Federal Excise Duty) are regressive because they are applied uniformly, regardless of the taxpayer's income. This disproportionately affects lower-income groups, as the tax consumes a larger percentage of their limited disposable income, thereby exacerbating income and wealth inequality.