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FBR�s POS Integration: Digitalisation of Business Transactions and Associated Challenges

Author

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  • Ghulam Nabi

    (Pakistan Institute of Development Economics)

Abstract

Tax revenue to GDP share varies across the globe depending on the capacity of the revenue authority of a government, with the world�s developed economies having a substantially higher capacity to collect a higher share of tax revenue (Besley and Person, 2014). Fiscal experts observe low compliance of taxes, where many people and businesses easily escape from the tax net in developing countries. Consequently, people do not voluntarily participate (evade taxes), or if they do, they reduce their taxable liabilities (tax avoidance). As they are operating in an undocumented sector, thanks to the lack of book-keeping or any other sources for internal or external audit by the revenue authorities. This reflects both hard-to-tax sectors; this includes a subset of economic activities where the tax compliance is problematic and needs to be increased and enhancing the revenue collecting authorities� capacity to develop a more buoyant method of collecting desired revenues.

Suggested Citation

  • Ghulam Nabi, 2022. "FBR�s POS Integration: Digitalisation of Business Transactions and Associated Challenges," PIDE Knowledge Brief 2022:64, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:kbrief:2022:64
    as

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    File URL: https://file.pide.org.pk/uploads/kb-064-fbr-s-pos-integration-digitalisation-of-business-transactions-and-associated-challenges.pdf
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    References listed on IDEAS

    as
    1. Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Emmanuel Saez, 2016. "Why Can Modern Governments Tax So Much? An Agency Model of Firms as Fiscal Intermediaries," Economica, London School of Economics and Political Science, vol. 83(330), pages 219-246, April.
    2. Todd Kumler & Eric Verhoogen & Judith Frías, 2020. "Enlisting Employees in Improving Payroll Tax Compliance: Evidence from Mexico," The Review of Economics and Statistics, MIT Press, vol. 102(5), pages 881-896, December.
    3. Dina Pomeranz, 2015. "No Taxation without Information: Deterrence and Self-Enforcement in the Value Added Tax," American Economic Review, American Economic Association, vol. 105(8), pages 2539-2569, August.
    4. Joana Naritomi, 2019. "Consumers as Tax Auditors," American Economic Review, American Economic Association, vol. 109(9), pages 3031-3072, September.
    5. Nicky J. Welton & Howard H. Z. Thom, 2015. "Value of Information," Medical Decision Making, , vol. 35(5), pages 564-566, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    FBR; POS; Integration; Digitalisation; Business Transactions;
    All these keywords.

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