Open AccessReform Issues in Tax Policy and Tax Administration for Self-reliant Development
Author(s) -
Ahmad Saeed Khan
Publication year - 1998
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/v37i4iipp.1105-1122
Subject(s) - excise , tax reform , economics , public economics , indirect tax , tax credit , value added tax , ad valorem tax , economic policy , equity (law) , business , tax revenue , macroeconomics , political science , law
Similar to most countries, objectives of the taxation systemin Pakistan are not well-defined. The stated objectives include resourcegeneration, promoting arealsectorspecific economic activities,discouraging undesired imports/production, and encouraging savings andinvestment. These objectives have been met through a variety of taxconcessions and exemptions, rebates and credits, and differentiated taxrates and tariffs. The revenue short falls/leakages resulting frompreferential tax treatment of the desired activities were offset throughappropriate changes in various fiscal instruments, e.g. high tax ratesand tariffs, regulatory duties, extended withholding and presumptivetaxes, excise duties on services, and many more. These measures, inturn, have complicated the taxation system and adversely affected theequity, neutrality and progressivity thereof.