Open AccessIncome Tax Revenue as an Indicator of Regional Development in Pakistan
Author(s) -
Ijaz Hussain,
Sumbal Rana
Publication year - 2009
Publication title -
the lahore journal of economics
Language(s) - English
Resource type - Journals
eISSN - 1811-5446
pISSN - 1811-5438
DOI - 10.35536/lje.2009.v14.i2.a6
Subject(s) - revenue , economics , tax revenue , gross income , gross domestic product , income tax , agricultural economics , state income tax , tax reform , public economics , macroeconomics , finance
The objective of this paper is to highlight the use of income taxrevenue as an indicator of regional development in Pakistan. Initially, weidentify a dramatic shift in income tax revenue trends at the provinciallevel for the period 1992/93 to 2005/06. We develop a simple model ofincome tax revenue and estimate the relationship between growth ofincome tax revenue and gross regional product (GRP). Based on theestimated relationship, Punjab appears to have been the fastest growingprovince during the 1990s, while Sindh shows the greatest level ofdynamism in the current decade. This is attributed to high growth rates,especially in large-scale manufacturing during the period, which has alarger sectoral share in Sindh’s economy.