Tax Administration

Amin, A., Majeed, A. N., Parveen, S., Kamran, M. A. & Anwar, S. (2014). Factors Affecting Tax Collection in Pakistan: An Empirical Investigation. Journal of Finance and Economics, 2014 2 (5), pp 149-155.
http://pubs.sciepub.com/jfe/2/5/3/

The authors aim to empirically demonstrate the extent of the impact of factors influencing tax collection in Pakistan. Tax to GDP ratio, corruption, political instability, trade openness, real per capita income and inflation were considered the main factors. The authors aim to emphasize the collective affect of tax determinants on tax collection. The study uses data from 1980-2010 for regression analysis obtained from International Country Risk Guide (ICRG), Handbook of Statistics and Polity to Project IMF. Augmented Dickey Fuller (ADF) test has been applied to check the stationarity of all variables. The authors applied Autoregressive Distributed Lagged (ADRL) model. The results of the study indicated that tax collection shrinks due to increasing corruption, inflation and political stability while trade openness and real per capita income boost tax revenues. The study suggests important policy implications for increasing tax collection in Pakistan including computerizing all records through massive e government campaign in all ministries and departments, increasing moral awareness on tax collection, improving transparency in tax collection, counterchecking of inspection teams and by eliminating restriction on trade and increasing more facilities in EPB and TDA.