Open AccessThe Problem of Agricultural Taxation in West Pakistan and an Alternative Solution
Author(s) -
M. Ghaffar Chaudhry
Publication year - 1973
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v12i2pp.93-122
Subject(s) - incentive , revenue , government (linguistics) , economics , investment (military) , agriculture , public finance , control (management) , business , public economics , development economics , economic policy , finance , market economy , macroeconomics , geography , political science , linguistics , philosophy , management , archaeology , politics , law
In Pakistan the problem of resource mobilization has becomeacute in recent years. The Fourth Five Year Plan [34, pp.11-18], forinstance, reported that the central government could finance only 72.5per cent of its planned investment during the Third Five Year Plan. Theprovincial situation was described to be even worse. According to theestimates of the Planning and Development Board [47, p. 7] during thefirst four years of the Third Plan, the implementation of the publicsector programme for West Pakistan was only 52.4 per cent. Thefundamental reason of the shortfall of resources is that Govern¬mentshave failed to tap all possible domestic sources of revenue. Taxation is[11, p. 29] by far the most important source of development finance bothin its direct contribution to revenue and in its indirect effects oncontrol, incentives and in reducing income inequalities. Taxation isnecessary for the stable and sustainable growth of developingeconomies.