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Incidence of Taxes in Pakistan: Primer and Estimates

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Abstract

Who pays Pakistan’s taxes? Do they fall inordinately on low-income families, or on labor working in the formal sector, or is the tax burden borne disproportionately by the higher income classes, who also own most of the capital in the country? The fairness of the tax system is not only affected by who pays taxes, but by who does not. The latter group might include those working in the hard-to-tax informal sector, agriculture, those who benefit from legal exemptions, and those who evade taxes.

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  • Umir Wahid & Sally Wallace, 2008. "Incidence of Taxes in Pakistan: Primer and Estimates," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0813, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  • Handle: RePEc:ays:ispwps:paper0813
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    File URL: http://icepp.gsu.edu/files/2015/03/ispwp0813.pdf
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    1. Atkinson, Anthony B., 2000. "Increased Income Inequality in OECD Countries and the Redistributive Impact of the Government Budget," WIDER Working Papers 295534, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
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    3. Browning, Edgar K, 1978. "The Burden of Taxation," Journal of Political Economy, University of Chicago Press, vol. 86(4), pages 649-671, August.
    4. Roy Bahl & Sally Wallace & Musharraf Cyan, 2008. "Pakistan: Provincial Government Taxation," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0807, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    5. John J Matovu & Duanjie Chen & Ritva Reinikka-Soininen, 2001. "A Quest for Revenue and Tax Incidence in Uganda," IMF Working Papers 2001/024, International Monetary Fund.
    6. Ahmad, Ehtisham & Ludlow, Stephen, 1989. "The distributional consequences of a tax reform on a VAT for Pakistan," Policy Research Working Paper Series 238, The World Bank.
    7. Dillon Alleyne & James Alm & Roy Bahl & Sally Wallace, 2004. "Tax Burden in Jamaica," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0434, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    8. Blejer, Mario I & Guerrero, Isabel, 1990. "The Impact of Macroeconomic Policies on Income Distribution: An Empirical Study of the Philippines," The Review of Economics and Statistics, MIT Press, vol. 72(3), pages 414-423, August.
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    Cited by:

    1. Faiz Ur Rehman & Muhammad Nasir, 2018. "In the Same Boat, but not Equals: The Heterogeneous Effects of Indirect Taxation on Child Health in Punjab-Pakistan," PIDE-Working Papers 2018:158, Pakistan Institute of Development Economics.
    2. Martin Rama & Tara Béteille & Yue Li & Pradeep K. Mitra & John Lincoln Newman, 2015. "Addressing Inequality in South Asia," World Bank Publications, The World Bank, number 20395, November.
    3. Anjum Nasim, 2012. "Agricultural Income Taxation: Estimation of the Revenue Potential in Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 51(4), pages 321-337.
    4. James Alm & Mir Ahmad Khan, 2008. "Assessing Enterprise Taxation and the Investment Climate in Pakistan," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0810, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    5. Andrew Feltenstein & Luciana Lopes & Janet Porras Mendoza & Sally Wallace, 2013. "“The Impact of Micro-simulation and CGE modeling on Tax Reform and Tax Advice in Developing Countries”: A Survey of Alternative Approaches and an Application to Pakistan," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1309, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    6. Robina Ather Ahmed & Mark Rider, 2008. "Pakistan’s Tax Gap: Estimates By Tax Calculation and Methodology," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0811, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    7. Haroon Jamal* & Sohail Javed**, 2013. "Incidence of general sales tax in Pakistan : Latest estimate," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 23(2), pages 73-95.
    8. James Alm & Mir Ahmad Khan, 2015. "Assessing and Reforming Enterprise Taxation in Pakistan," Working Papers 1513, Tulane University, Department of Economics.

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    Keywords

    Pakistan; Pakistan taxation; hard-to-tax informal sector;
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