IMF Working Papers

Unlocking Pakistan’s Revenue Potential

By Serhan Cevik

August 26, 2016

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Serhan Cevik. Unlocking Pakistan’s Revenue Potential, (USA: International Monetary Fund, 2016) accessed September 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Despite the significant progress in recent years, Pakistan’s tax revenue remains low relative to comparator countries and the tax effort expected for the country’s level of development. In light of the potential endogenity of tax revenue and economic growth, this paper contributes to the literature by developing a novel identification strategy to estimate the short-run and long-run elasticities of tax revenue. The empirical findings indicate that a tax system with low elasticity cannot take full advantage of economic growth. Accordingly, unlocking revenue potential is dependent on broadening the tax base, strengthening administration, and rationalizing tax policy across all levels of the general government.

Subject: Corporate income tax, Personal income tax, Revenue administration, Tax elasticity, Tax policy, Taxes, Value-added tax

Keywords: Africa, Asia and Pacific, Boosting tax morale, Corporate income tax, Distortionary tax regime, GDP, Global, GST revenue elasticity, Increase revenue yield, Personal income tax, Real GDP, Revenue administration, Revenue efficiency, Tax, Tax bouyancy, Tax buoyancy, Tax concession, Tax efficiency, Tax elasticity, Tax morale, Tax Policy, Tax revenue, Tax revenue elasticity, Tax series, Value-added tax, WP

Publication Details

  • Pages:

    22

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2016/182

  • Stock No:

    WPIEA2016182

  • ISBN:

    9781475530506

  • ISSN:

    1018-5941

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