Abstract:
This paper explores how Pakistan can get out of the low-tax-to-GDP
trap and come close to achieving its revenue targets. Examining the trend
factors influencing the trend in total and individual tax-to-GDP ratios over
a period of twenty years, the paper concludes that partially successful
and/or inappropriate tax reforms have put Pakistan in this trap. While
highlighting that a period of economic slowdown may not be the best time
to make a big push on resource mobilization, the paper presents a strategy
which aims at not only enhancing tax revenues but also making the
taxation structure more progressive, broad based and balanced
