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Pecuniary and Non-Pecuniary Motivations for Tax Compliance: Evidence from Pakistan

Author

Listed:
  • Joel Slemrod
  • Obeid Ur Rehman
  • Mazhar Waseem

Abstract

We examine two Pakistani programs to explore the role of deterrence as well as social and psychological factors in the tax compliance behavior of agents. In the first of these programs, the government began revealing income tax paid by every taxpayer in the country. The second program publicly recognizes and rewards the top 100 tax paying corporations, partnerships, self-employed individuals, and wage-earners. We find that both public disclosure and social recognition of top taxpayers caused a substantial increase in tax payments. We explore the drivers of this behavior, including the shift of social norms toward compliance.

Suggested Citation

  • Joel Slemrod & Obeid Ur Rehman & Mazhar Waseem, 2019. "Pecuniary and Non-Pecuniary Motivations for Tax Compliance: Evidence from Pakistan," NBER Working Papers 25623, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:25623
    Note: PE
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    References listed on IDEAS

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    Cited by:

    1. Koumpias, Antonios M. & Martinez-Vazquez, Jorge, 2019. "The impact of media campaigns on tax filing: quasi-experimental evidence from Pakistan," Journal of Asian Economics, Elsevier, vol. 63(C), pages 33-43.
    2. Mazhar Waseem, 2019. "Information, Asymmetric Incentives, or Withholding? Understanding the Self-Enforcement of Value-Added Tax," CESifo Working Paper Series 7736, CESifo Group Munich.

    More about this item

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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