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Pakistan: Economy Under Elites— Tax Amnesty Scheme, 2019

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  • Ahmed, Muhammad Ashfaq
  • Malik, Ikram Ali
  • Nawaz, Nasreen

Abstract

The Tax Amnesty Scheme, 2019 (TAS 2019), needs to be read as a sequel to the Tax Amnesty Schemes, 2018 (TAS 2018), and so does this article. This article draws significantly on “Pakistan: Economy Under Elites – Tax Amnesty Schemes, 2018” – in title, analytical framework, and even the thrust of argument. Unlike TAS, 2018, which was triggered by the impending bulk inflows of offshore bank account information under the Organization for Economic Cooperation & Development (OECD) – Common Reporting Standard (CRS) framework, the TAS 2019 was prompted by the operationalization of the Benami Transactions (Prohibition) Act, 2017, via framing of the Benami Transactions (Prohibition) Rules, 2019. The granting of the TAS 2019 during PTI government’s prime years despite its public opposition to 2018 was evidence of an unbearable amount of pressure that Elites Ltd can exact on ruling coalitions in Pakistan, and successfully. The below par outcomes go to vindicate the existing knowledge on the subject that compliance to tax laws; nay, any laws, is a function of state recoil and deterrence. The article forebodes that the perverse policy choice of tax amnestization is set to continue in the future.

Suggested Citation

  • Ahmed, Muhammad Ashfaq & Malik, Ikram Ali & Nawaz, Nasreen, 2022. "Pakistan: Economy Under Elites— Tax Amnesty Scheme, 2019," MPRA Paper 113918, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:113918
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    References listed on IDEAS

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    1. Herman B. Leonard & Richard J. Zeckhauser, 1987. "Amnesty, Enforcement, and Tax Policy," NBER Chapters, in: Tax Policy and the Economy, Volume 1, pages 55-86, National Bureau of Economic Research, Inc.
    2. Bayer, Ralph-C. & Oberhofer, Harald & Winner, Hannes, 2015. "The occurrence of tax amnesties: Theory and evidence," Journal of Public Economics, Elsevier, vol. 125(C), pages 70-82.
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    Cited by:

    1. Ahmed Muhammad Ashfaq, 2019. "Pakistan: Economy under Elites – Tax Amnesty Schemes, 2018," Asian Journal of Law and Economics, De Gruyter, vol. 10(2), pages 1-18, August.
    2. Shahryar Bahawal, 2021. "Tax Amnesties in Tax Reform Policy: A Case Study from Pakistan and Lessons for Developing Economies," Asian Journal of Law and Economics, De Gruyter, vol. 12(1), pages 37-71, April.
    3. Muhammad Ashfaq Ahmed, 2022. "UN MTC Article 26: Inequitable Exchange of Information Regime—Questionable Efficacy in Asymmetrical Bilateral Settings," Laws, MDPI, vol. 11(5), pages 1-23, August.
    4. Mahmood Khalid & Naseem Faraz, 2022. "A Critical Appraisal of Tax Expenditures in Pakistan," PIDE Knowledge Brief 2022:50, Pakistan Institute of Development Economics.

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    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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