The role of taxation in Pakistan's revival / edited by Jorge Martinez-Vazquez and Musharraf Rasool Cyan.

Format:

Book

Contributor:

Martinez-Vazquez, Jorge, editor.

Cyan, Musharraf Rasool, editor.

Language:

English

Subjects (All):

Fiscal policy--Pakistan.

Fiscal policy.

Pakistan.

Taxation--Pakistan.

Local Subjects:

Taxation--Pakistan.

Physical Description:

700 pages : illustrations ; 22 cm

Edition:

First edition.

Place of Publication:

Karachi : Oxford University Press, 2015.

Summary:

The tax system of Pakistan continues to under-perform particularly in its ability to raise adequate revenues. The bases of the most important taxes, such as Personal and Corporate income Tax and the General Sales Tax (GST), continue to be narrow and the level of tax evasion remains high. Moreover, in recent years, the Tax-to-GDP (Gross Domestic Product) ratio has seen a substantial decline. On the other hand, most of the macroeconomic fiscal adjustment in recent years has been on the expenditure side of the budget. Pakistan's need for spending on social services such as education, health, and capital infrastructure are likely to increase in the near future as governments pursue a strategy of sustained economic growth. Most political manifestos brought forward by political parties spell out major expenditure programmes while expressing a desire to increase tax collection. To reach the desired taxation level in Pakistan, an in-depth policy reforms programme needs to be formulated by policymakers. This will require a detailed analysis of tax structures and tax administration. An attempt has been made in this book to provide the necessary analysis. Book jacket.

Contents:

1 Pakistan's Enduring Agenda for Tax Reforms / Musharraf R. Cyan Cyan, Musharraf R., Jorge Martinez-Vazquez Martinez-Vazquez, Jorge 1

1 Introduction 1

1.1 The Main Issue 1

1.2 Brief Overview of Government Revenues 4

2 Structural Performance of Taxes 9

2.1 Revenue Adequacy and International Comparisons 9

2.2 Buoyancy and Stability of Revenues 22

2.3 Equity and Fairness 26

2.4 Efficiency Considerations 28

2.5 Several Critical Tax Administration Issues 30

3 Current Tax Structure and Main Issues 33

3.1 Basic Structure of the Tax System in an International Perspective 33

3.2 Main Issues with the Current Tax Structure 42

4 Plan of the Book 50

2 A Review of Major Taxes / Wayne Thirsk Thirsk, Wayne 78

1 A Brief Snapshot of Pakistan's Economy 78

2 Income Taxes Levied on Individuals and Associations of Persons 80

3 Tax Policy Issues Concerning the Taxation of Individuals and AOPs 86

4 The Income Tax on Companies 95

5 Policy Issues Concerning the Taxation of Companies 101

6 Sales Tax 105

7 Policy Issues Relating to the Sales Tax 111

8 Federal Excise Duties 112

9 Policy Issues under the Excise Tax 114

10 Wealth Taxes in Pakistan 115

11 Customs Revenue from Imports 116

12 Options and Directions for Tax Reform in Pakistan 117

3 Tax Policy Effects on Business Incentives / James Aim Aim, James, Mir Ahmad Khan Khan, Mir Ahmad 142

1 Introduction 142

2 Some General Principles and Worldwide Trends for Taxing Companies in a Globalizing World 143

3 Some Distorting Effects of Pakistan's Corporate Taxes 153

4 Evaluating the Pakistan System of Corporate Taxation 176

5 Reforming the Pakistan Enterprise Tax System 198

4 Tax Provisions and the Global Economy / Geerten M. M. Michielse Michielse, Geerten M. M. 209

1 General Introduction 209

2 Double Tax Agreements 209

3 Effects of Economic Globalization 210

4 Residency 212

5 Treaty Definition 215

6 Sourcing of Income 216

7 Permanent Establishment 218

8 Specific Business Activities 222

9 International Profit Allocation (Transfer Pricing) 231

10 Other Issues 237

11 Trade Agreements 242

5 The Equity Debate in Tax Policy / Umar Wahid Wahid, Umar, Sally Wallace Wallace, Sally 255

1 Introduction 255

2 The Concept of Tax Incidence 256

3 Modelling the Incidence of Taxes in Pakistan 261

4 Incidence Assumptions 275

5 Tax Incidence in Pakistan 287

6 Conclusions 319

6 Tax Gap: Where to Collect More Taxes / Robina Ather Ahmed Ahmed, Robina Ather, Mark Rider Rider, Mark 337

1 Introduction 337

2 Tax Gap Estimation Approaches 345

3 Pakistan's Tax Gap 358

4 Conclusions 376

7 Underutilized Land and Property Taxes / Roy Bahl Bahl, Roy, Musharraf R. Cyan Cyan, Musharraf R., Sally Wallace Wallace, Sally 387

1 Revenue Assignment and Structure 388

2 Urban Immovable Property Tax: Punjab 392

3 Urban Immovable Property Tax: NWFP 419

4 Comprehensive Structural Reform: UIPT 431

5 Land Revenues: Land and Property Transfer Taxes 435

6 Agricultural Income Tax (AIT) 456

7 Conclusions and Implementation 475

8 The Potential of Provincial Taxation / Roy Bahl Bahl, Roy, Musharraf R. Cyan Cyan, Musharraf R., Sally Wallace Wallace, Sally 488

1 Motor Vehicle Taxes 488

2 Tax on Professions, Trades, and Callings (Profession Tax) 503

3 Sales Tax on Services 514

4 Other Minor Taxes 530

5 Hydel Profits: NWFP 535

6 Conclusions 537

9 Pakistan's Short and Medium Term Reform Options / Jorge Martinez-Vazquez Martinez-Vazquez, Jorge, Kaspar Richter Richter, Kaspar 549

1 National Tax Policy Reform 553

2 General Sales Tax 585

3 Corporate Income Tax 613

4 Withholding Tax 630

5 Individual Income Tax 654

6 Federal Excise Duties 679

7 Customs Duties 684.

Notes:

Includes bibliographical references and index.

ISBN:

9780199401154

0199401152

OCLC:

929606963