Pakistan - Tax Policy Report : Tapping Tax Bases for Development - Summary Report

The main message of this report is that Pakistan can take measures to increase the tax to gross domestic product (GDP) ratio by around 3.5 percentage points over the next five years. In order to ensure a healthy long-run economic development, Pakistan needs to embrace substantial changes in tax policy aimed at increasing the buoyancy of the tax system, broadening the tax bases, reducing distortions and phasing out exemptions. Such tax reforms are also required to deal with the risks stemming from sustained large budget deficits. Failing to act sooner rather than later, only makes the problem more difficult to address without considerable instability, raises the probability of fiscal and financial disarray at some point in the future, and runs the risks of further constraining policy flexibility in future. This report highlights design ingredients for a comprehensive reform of tax policy in Pakistan. In the final analysis, the success of tax reform will depend less on the mechanism of taxation and more on the politics of taxation. Beyond adequate administrative resources and an implementation strategy, this will require a clear political recognition of the importance of the task and the willingness to persist with tax reform over the long haul.

Bibliographic Details

Main Author:	World Bank
Language:	English
Published:	World Bank 2009-07-01
Subjects:	AUDITS, BENEFICIARY, BUDGET DEFICITS, CAPACITY BUILDING, CAPITAL GAINS, CAPITAL GAINS TAX, CD, CORPORATE INCOME TAX, CORPORATE TAX, CORPORATE TAX RATE, DEBT, DEVELOPING COUNTRIES, DIRECT TAXATION, DISBURSEMENTS, DIVIDENDS, DOUBLE TAXATION, E-COMMERCE, ECONOMIC CRISES, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, EFFECTIVE TAX RATES, EMERGING MARKET, EMERGING MARKET ECONOMIES, EXCISE DUTIES, EXCISE TAX, EXCISE TAXES, EXPENDITURE, EXPENDITURES, EXPORTS, FEDERAL TAX, FINANCIAL INCENTIVES, FINANCIAL MANAGEMENT, FINANCIAL SECTOR, FISCAL DECENTRALIZATION, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL POLICY, FIXED CHARGE, FOREIGN OWNED COMPANIES, FORMAL ECONOMY, GAS SECTOR, GOVERNMENT EXPENDITURES, GOVERNMENT SPENDING, GROSS DOMESTIC PRODUCT, HEAVY RELIANCE, HORIZONTAL EQUITY, INCOME GROUPS, INCOME LEVEL, INCOME TAX, INCOME TAXES, INFLATION, INFORMAL ECONOMY, INTEREST PAYMENTS, INTERNAL REVENUE, INTERNATIONAL BEST PRACTICES, INTERNATIONAL CAPITAL, INTERNATIONAL DEVELOPMENT, INTERNATIONAL STANDARD, INVESTING, INVESTMENT CLIMATE, LEGAL INSTRUMENTS, LEGISLATIVE FRAMEWORK, LEVEL PLAYING FIELD, MACROECONOMIC STABILITY, MARGINAL TAX RATES, MONETARY FUND, MOTOR VEHICLE, NATIONAL FINANCE, PENSIONS, PERSONAL INCOMES, PETROLEUM PRODUCTS, PLEDGES, POLICE, POLITICAL ECONOMY, PREFERENTIAL TREATMENTS, PUBLIC POLICY, PUBLIC SPENDING, RAPID GROWTH, REFORM PROGRAM, RESIDENCY, RETURN, REVENUE ASSIGNMENTS, RIDER, ROAD, ROADS, SAFETY, SAFETY NETS, SALES TAX, SMALL BUSINESSES, SOCIAL SAFETY NETS, SOCIAL SECURITY TAXES, STATUTORY TAX, STATUTORY TAX RATE, STOCK MARKET, STRUCTURAL PROBLEMS, SUSTAINABLE DEVELOPMENT, TAX, TAX ADMINISTRATION, TAX ASSESSMENT, TAX AVOIDANCE, TAX BASE, TAX BASES, TAX BRACKETS, TAX BURDENS, TAX COLLECTION, TAX COLLECTIONS, TAX COMPLIANCE, TAX CREDITS, TAX CUTS, TAX ENFORCEMENT, TAX EVASION, TAX EXEMPT, TAX EXEMPTIONS, TAX INCENTIVES, TAX INCREASES, TAX LAW, TAX LAWS, TAX LEGISLATION, TAX LIABILITIES, TAX LIABILITY, TAX PAYERS, TAX POLICIES, TAX POLICY, TAX PREFERENCES, TAX PROVISIONS, TAX RATE, TAX RATES, TAX RECEIPTS, TAX REFORM, TAX REFORMS, TAX RETURNS, TAX REVENUE, TAX REVENUES, TAX RULES, TAX STRUCTURE, TAX SYSTEM, TAX SYSTEMS, TAX TREATMENTS, TAX-PAYERS, TAXABLE INCOME, TAXATION, TAXPAYER, TAXPAYERS, TECHNICAL ASSISTANCE, TOLL, TRADE LIBERALIZATION, TRANSFER PRICE, TRANSFER PRICING, TRANSFER TAXES, TRANSPARENCY, TRANSPORT, TRUE, TURNOVER, VALUE ADDED TAX, VEHICLE TAXES, VOLATILITY, WITHHOLDING TAX, WITHHOLDING TAXES,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000334955_20090828015021 https://hdl.handle.net/10986/3099
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