Title

Taxation system in Pakistan : weaknesses and opportunities

Author

Muhammad Ehsan

Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

2015

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Keywords

Taxes Pakistan, Economic growth, Tax Revenues

Executive Summary

• Taxes are vital and effective taxation system is back bone for the economy of a country. Pakistan taxation system is trying to flourish but could not yet succeed.
• There are number of taxes i.e. Federal & Provincial/local taxes which further expended with direct & indirect taxes. This makes the taxation system a bit complex.
• Taxation system is regressive rather progressive. Tax revenues are the short term measures and products or industry specific. Application of taxation system is not fair and equate.
• Government is collecting the taxes from withholding of taxes and re-assessments of the incomes already assessed.
• Sales tax on supplies and services structure is complexed; further, exemption and reduced rate make it more complex.
• There are so many exemption allowed in direct and indirect taxes to facilitate certain class or business, which affects the revenue and discourage the taxpayers.
• Tax to GDP ratio of Pakistan is very low as compare to comparable economies and neighboring countries.
• Main reason for evasion of taxes is misuse of people's money by the Government. Government and tax machinery itself Is non-compliant to pay off their actual tax liabilities, are under-declaration or out of tax net.
• Tax machinery is not fully trained and conversant with modern techniques and business requirements and their accounting processes. Irrational targets are given to the tax offices which also affect their performance.
• Government is taking the initiative to expand the tax base and for the documentation of economy. However, the tax policies should be consistent and for long term and not industry specific. Further, enforcement of law should be fair and without discrimination.
• Benefits of taxes should reach to the common man. This will give the confidence to the taxpayer to pay the taxes.

Pages

47

Link to Catalog Record

https://ils.iba.edu.pk/cgi-bin/koha/opac-detail.pl?biblionumber=55371

Recommended Citation

Ehsan, M. (2015). Taxation system in Pakistan : weaknesses and opportunities (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-emba/254