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Unlocking Pakistan’s Revenue Potential
Author:
Mr. Serhan Cevik
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https://orcid.org/0000-0002-2373-2023
Series:
IMF Working Papers
Volume/Issue:
Volume 2016: Issue 182
Language:
English
Publication Date:
26 Aug 2016
DOI:
https://doi.org/10.5089/9781475530506.001
ISBN:
9781475530506
ISSN:
1018-5941
Pages:
22
Keywords:
WP; tax revenue; tax; GDP; real GDP; Tax Policy; revenue administration; tax bouyancy; tax elasticity; tax buoyancy; distortionary tax regime; tax concession; increase revenue yield; revenue efficiency; tax morale; boosting tax morale; tax efficiency; tax series; tax revenue elasticity; GST revenue elasticity; Corporate income tax; Personal income tax; Value-added tax; Asia and Pacific; Africa; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund