Evolving a tax culture
Since taxes are the primary source of revenue for any state, therefore every state constantly endeavours to improve the general shape and quality of its taxation system. Tax noncompliance, in…
Difficulties in implementation Agriculture income tax
Last week the discussion was on viability of agriculture income tax. The necessary corollary to that would be the implementation of this tax. The three major questions that need to…
Tax on agriculture
International financial and monetary institutions and watchdogs of economic and fiscal policies have been persistently demanding that the government widen the base of the tax network in Pakistan. This initiative…
Paradigm shift in tax policy
‘The impact of economic growth on the lives of people is partly a matter of income distribution, but it also depends greatly on the use that is made of the…
Why do all roads lead to more taxes?
As a staff-level agreement between IMF (International Monetary Fund) and Pakistan following the ninth review of the IMF programme inches ever closer, the government recently announced the Supplementary Finance Bill,…
Fixing the taxation system – Part IV
Among many compelling reasons for further devolution to the third tier is that citizens in a local jurisdiction are found to pay more taxes as they see that these are…
Fixing the taxation system – Part III
One of the pernicious side-effects of a large dose of the federal divisible tax pool injected into the provincial finances is that the provinces have become slack in mobilizing their…
Fixing the taxation system – Part II
Studies on sectoral incidence show that industry bears more than two-thirds of the tax, while the services sector bears about 21 per cent and agriculture 3.0 per cent. In the…
Fixing the taxation system – Part I
Very few people outside the economics profession realize that fiscal (government revenue and expenditure) and current accounts (inflows and outflows of foreign exchange) are closely interlinked. A current account is…
Taxing foreign rental income
Investment in foreign properties by a specific section of society in Pakistan has been a pretty common phenomenon, especially in countries like the UAE, UK and so on. Naturally, the…
