Shaikh, Salman (2012): Estimating the Federal Direct Tax Buoyancy for Pakistan in Post-1973 Era. Published in: Global Management Journal for Academic & Corporate Studies (GMJACS) , Vol. 2, No. 1 (31. December 2012)
Download (349kB) | Preview
This study used the simple co-integration technique to estimate the direct tax buoyancy for Pakistan economy for the 36 year period starting from FY-1974 to FY-2009. The buoyancy estimated was more than unity which represents slight improvement over previous estimates in past studies. The study attributes the improvement to factors such as expansion of tax base, diversification and deepening of manufacturing sector and structural change in the economy with the size of agriculture sector output shrinking as proportion of GDP and the proportion of direct tax increasing in proportion to total taxes gradually. The study recommends certain policy recommendations which include increase in tax base, reduction in tax rates, reducing tax evasion opportunities by taxing all sources of income and by increasing documentation through compulsory show of tax identity in making most material transactions.
|Item Type:||MPRA Paper|
|Original Title:||Estimating the Federal Direct Tax Buoyancy for Pakistan in Post-1973 Era|
|Keywords:||Taxes, Fiscal Policy, Public Finance, Tax Buoyancy, Tax Elasticity, Tax to GDP Ratio|
|Subjects:||E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy
H - Public Economics > H2 - Taxation, Subsidies, and Revenue
H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents
|Depositing User:||Salman Shaikh|
|Date Deposited:||07. Nov 2012 15:46|
|Last Modified:||22. Aug 2015 19:35|
Ahmed, Ehtesham (2010). “The Political Economy of Tax reforms in Pakistan”. Asia Research Centre Working Paper No. 33.
Ahmed, Qazi Masood & Muhammad, Suleiman (2010). “Determinants of Tax Buoyancy: Empirical Evidence from Developing Countries”. European Journal of Social Sciences, Vol 13 (3), pp. 408-414.
Ahmed, Qazi M. (1994). “Determinants of Tax Buoyancy: Evidence from Developing Countries”. Pakistan Development Review, Vol 33 (4), pp. 1089-1098.
Bilquees, Faiz (2004).“Elasticity and Buoyancy of the Tax System in Pakistan”. The Pakistan Development Review, Vol 43 (1), pp. 73–93.
Chaudhry & Munir (2010). “Determinants of Low Tax Revenue in Pakistan”. Pakistan Journal of Social Sciences (PJSS), Vol. 30 (2), pp. 439-452.
Gillani, Syeda Fizza (1986), “Elasticity and buoyancy of federal taxes in Pakistan”. The Pakistan Development Review, Vol 25 (2), pp. 163-174.
Gujarati, Domodar N. (2002). “Basic Econometrics”. McGraw-Hill/Irwin: Ney York.
Mukarram, Fauzia (2001), “Elasticity and Buoyancy of Major Taxes In Pakistan”. Pakistan Economic and Social Review, Vol 39, Issue 1, pp. 75-86.
Ministry of Finance (2011). “Fiscal Policy Statement 2010-11”. Government of Pakistan, Islamabad.
Ministry of Finance (2011). “Annual Year Book 2010-11”. Government of Pakistan, Islamabad.
Pasha, Ayesha G. (2010), “Can Pakistan Get Out of the Low Tax-to-GDP Trap?”. The Pakistan Development Review, Vol 15 (SE), pp. 171-185.
Rafaqat, Saadia (2005). “Redistributive Effect of GST Tax Reforms: Pakistan 1990 - 2001”. Pakistan Development Review, Vol 44 (4), pp. 841 - 862.