The choice of tax structure directly affects tax revenues, economic growth and income distribution. Therefore, while developing a comprehensive taxation system, the governments must be cautious to take proper account of its macroeconomic and distributional impacts. In recent years, various tax rate reform proposals have been put forward by different individuals and institutions. These include continuing with progressive income tax but reducing income tax rates and the number of slabs, opting to flat tax rate, cutting down corporate tax rate, sales tax and custom duties, abolishing various indirect taxes, exemptions, etc. This study aims to identify and quantify the direction and magnitude of impacts of proposed changes in direct and indirect tax rates and tax structure on various sectors of the economy, economic growth, employment level, government revenue and income distribution, etc., using a general equilibrium framework. This analysis will provide government and policymakers with a comprehensive comparative analysis of various tax rate proposals. Given the low tax to GDP ratio and economic growth in Pakistan, this study will help to choose a better tax rate structure.