Evaluation of Price Sensitivity of Different Sectors of Economy to Subsidy Reduction in Water, Electricity and Gas Services

Imposing different taxes is one of the efficient tools for economics politics, such as distributive and financial politics; also it affects macroeconomic trends, such as growth, welfare, employment and stabilization. It should be considered that 70% of GDP is belong to the services and it creates many job opportunities in developed countries. Aim of this article is to study of subsidy reduction effect of water, electricity and gas services on price level of other sectors. the model which is used in this research is input-output table which can analysis the trade of different sectors and evaluate the integration of producer and consumer sectors. According to the finding of this article, subsidy reduction of water, electricity and gas services, only affects the net tax of production and import of all six sectors and in this way the water, electricity and gas services will be this first position which is affected by subsidy reduction. After water, electricity and gas services, other services, agricultural sector, industry and mining, housing, and oil and gas will be more affected by this policy.