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Can Pakistan Get Out of the Low Tax-to-GDP Trap?

Author

Listed:
  • Aisha Ghaus Pasha

    (Institute of Public Policy, Beaconhouse National University, Lahore, Pakistan.)

Abstract

This paper explores how Pakistan can get out of the low-tax-to-GDP trap and come close to achieving its revenue targets. Examining the trend factors influencing the trend in total and individual tax-to-GDP ratios over a period of twenty years, the paper concludes that partially successful and/or inappropriate tax reforms have put Pakistan in this trap. While highlighting that a period of economic slowdown may not be the best time to make a big push on resource mobilization, the paper presents a strategy which aims at not only enhancing tax revenues but also making the taxation structure more progressive, broad based and balanced.

Suggested Citation

  • Aisha Ghaus Pasha, 2010. "Can Pakistan Get Out of the Low Tax-to-GDP Trap?," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 15(Special E), pages 171-185, September.
    • Handle: RePEc:lje:journl:v:15:y:2010:i:sp:p:171-185
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    References listed on IDEAS

    as
    1. Le, Tuan Minh & Moreno-Dodson, Blanca & Rojchaichaninthorn, Jeep, 2008. "Expanding taxable capacity and reaching revenue potential : cross-country analysis," Policy Research Working Paper Series 4559, The World Bank.
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    Citations

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    Cited by:

    1. Shaikh, Salman, 2012. "Estimating the Federal Direct Tax Buoyancy for Pakistan in Post-1973 Era," MPRA Paper 42498, University Library of Munich, Germany.
    2. Salar, Laleena & Zaman, Khalid & Khilji, Bashir Ahmad & Khan, Muhammad Mushtaq & Lodhi, Mohammad Saeed, 2013. "The consequences of revenue gap in Pakistan: Unveiling the reality," Economic Modelling, Elsevier, vol. 30(C), pages 281-294.
    3. Shahzad AHMAD* & Maqbool H. SIAL** & Nisar AHMAD***, 2018. "INDIRECT TAXES AND ECONOMIC GROWTH: An Empirical Analysis of Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 28(1), pages 65-81.
    4. Reis, Jose Guilherme & Taglioni, Daria, 2013. "Determinants of export growth at the extensive and intensive margins : evidence from product and firm-level data for Pakistan," Policy Research Working Paper Series 6341, The World Bank.
    5. Muhammad Bilal Ijaz & Rana Muhammad Shahid Yaqub & Awais Javeed, 2021. "Determinants Of Taxable Capacity In Saarc Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(1), pages 51-65, March.

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    More about this item

    Keywords

    Tax; structure; reforms; Pakistan.;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue

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