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Tax Policy in Pakistan: An Assessment of Major Taxes and Options for Reform

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Author Info
Wayne Thirsk (Andrew Young School of Policy Studies, Georgia State University)
Abstract

This paper undertakes a critical evaluation of the strengths and weaknesses of all of Pakistan’s major sources of tax revenue: the individual income tax, the corporate income tax, the sales tax, excise taxes and trade taxes on imports. For each major tax it describes the nature of the current tax base and the rate or rate structure that is applied to that base. After that exercise the paper identifies certain features of each tax that raise significant concerns for tax policy and constitute the beginning of an agenda for future tax reform. In each case the tax policy issues that have been flagged are discussed within a policy framework that appeals to the broadly accepted norms of “good” taxation and international experience in grappling with these issues. The concluding section of this paper sets forth for consideration an array of tax reform proposals that attempt to address the most important flaws and problems that have been detected in Pakistan’s tax system.

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Publisher Info
Paper provided by International Studies Program, Andrew Young School of Policy Studies, Georgia State University in its series International Studies Program Working Paper Series, at AYSPS, GSU with number paper0808.

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Length: 77 pages
Date of creation: 01 Dec 2008
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Handle: RePEc:ays:ispwps:paper0808

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Related research
Keywords: Pakistan; Pakistan Taxation; fiscal decentralization; revenue mobolization; sources of tax revenue;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Klara Sabirianova Peter & Steve Buttrick & Denvil Duncan, 2007. "Global Reform of Personal Income Taxation, 1981-2005: Evidence from 189 Countries," International Studies Program Working Paper Series, at AYSPS, GSU paper0721, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
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  2. Jorge Martinez-Vazquez, 2006. "Pakistan: A Preliminary Assessment of the Federal Tax System," International Studies Program Working Paper Series, at AYSPS, GSU paper0624, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  3. Kelly Edmiston & Richard M. Bird, 2006. "Taxing consumption in Jamaica," Community Affairs Research Working Paper 2006-01, Federal Reserve Bank of Kansas City. [Downloadable!]
  4. Saadia Refaqat, 2003. "Social Incidence of the General Sales Tax in Pakistan," IMF Working Papers 03/216, International Monetary Fund.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. James Alm & Mir Ahmad Khan, 2008. "Assessing Enterprise Taxation and the Investment Climate in Pakistan," International Studies Program Working Paper Series, at AYSPS, GSU paper0810, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  2. Robina Ather Ahmed & Mark Rider, 2008. "Pakistan’s Tax Gap: Estimates By Tax Calculation and Methodology," International Studies Program Working Paper Series, at AYSPS, GSU paper0811, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
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This page was last updated on 2009-12-18.


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