IDEAS home Printed from https://ideas.repec.org/p/pid/kbrief/202250.html
   My bibliography  Save this paper

A Critical Appraisal of Tax Expenditures in Pakistan

Author

Listed:
  • Mahmood Khalid

    (Pakistan Institute of Development Economics)

  • Naseem Faraz

    (Pakistan Institute of Development Economics)

Abstract

PTI Government presented a balanced budget for FY2021-22 under tough economic conditions with an aim to achieve GDP growth and manage fiscal balance. The outlay of budget for FY 2021-22 stood at Rs 8.49 Trillion, up 19% from revised numbers of previous year. Higher expenditures have not been matched by higher taxes though for the same period. Tax collection by FBR has increased by 9.92% in FY2021 over the last year. However it is a good tax revenue growth despite economic collapse of last year, but, a lot needs to be done on the tax policy side, especially, the concessionary regime extended. This resulted in need for a supplementary finance bill after the IMF 6th Review Mission � October 4-19, 2021. It is reported that the demand of IMF was Rs 700 Billion in lieu of GST Tax expenditures reduction which was conceded upto Rs 343 Billion. These concessions are often criticised for being influenced by the lobbying and rent seeking segments(Ahmed, 2019). PIDE has been repeatedly suggesting key reforms in the overall tax Policy regime thus making it conducive for growth (see PIDE, 2020; 2021).

Suggested Citation

  • Mahmood Khalid & Naseem Faraz, 2022. "A Critical Appraisal of Tax Expenditures in Pakistan," PIDE Knowledge Brief 2022:50, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:kbrief:2022:50
    as

    Download full text from publisher

    File URL: https://file.pide.org.pk/uploads/kb-050-a-critical-appraisal-of-tax-expenditures-in-pakistan.pdf
    File Function: First Version, 2022
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ahmed Muhammad Ashfaq, 2019. "Pakistan: Economy under Elites – Tax Amnesty Schemes, 2018," Asian Journal of Law and Economics, De Gruyter, vol. 10(2), pages 1-18, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahmed, Muhammad Ashfaq & Malik, Ikram Ali & Nawaz, Nasreen, 2022. "Pakistan: Economy Under Elites— Tax Amnesty Scheme, 2019," MPRA Paper 113918, University Library of Munich, Germany.
    2. Shahryar Bahawal, 2021. "Tax Amnesties in Tax Reform Policy: A Case Study from Pakistan and Lessons for Developing Economies," Asian Journal of Law and Economics, De Gruyter, vol. 12(1), pages 37-71, April.
    3. Muhammad Ashfaq Ahmed, 2022. "UN MTC Article 26: Inequitable Exchange of Information Regime—Questionable Efficacy in Asymmetrical Bilateral Settings," Laws, MDPI, vol. 11(5), pages 1-23, August.

    More about this item

    Keywords

    Critical Appraisal; Tax Expenditures; Pakistan;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:kbrief:2022:50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.