The planning horizon covered by the paktimes model spans from 2015 to 2035 with 2015 being the base year. Please update this article to reflect recent events or newly available information. Fiscal policy statement 201516 ministry of finance. Pdf this paper analyzes the effects of taxes on economic activity in pakistan. Pakistan over the period 19602015 to better understand the evolution of tax. In case of pakistan, the shares of services are increasing in all sectors of economy over the period. Unlocking pakistans revenue potential international monetary fund. For the fy 20152016, the finance act was assented to on 11th september 2015 by his excellency the president and provides the legislative framework pertaining to taxes, duties, exemptions and reliefs for this fiscal year. After experiencing economic growth with a compound annual growth rate cagr of 5. Pakistan has bilateral and multilateral trade agreements with many nations and international organizations. Pakistans average economic growth rate in the first five decades 19471997 has been higher than the growth rate of the world economy during the same period.
Receipt of csf largely constituted the revenue from the defense sector. The opinions expressed and arguments employed are those of the authors. With 189 member countries, staff from more than 170 countries, and offices in over locations, the world bank group is a unique global partnership. Despite recent progress under the program, pakistans tax revenue remains. The mission of the department of community and economic development dced is to foster opportunities for businesses to grow and for communities to succeed and thrive in a global economy. It also includes withholding tax guide which summarizes withholding tax provisions for quick reference. In pakistan the 18 million richest peoples total consumption is 1. In fact, the growth rate of services sector is higher than the growth rate. Values are on a 1to7 scale unless otherwise annotated with an asterisk. Recent findings on tax incentives april 2015, new york. Pakistans economy is fiscally fragile because there is inadequate revenue, it said. Tax revenue 93,456 110,338 119,435 129,640 164,307 178,391 ii. Towards a sustainable financial system in indonesia. Now a day, even in the free market eco nomies, state does play a.
Particularly, problems in the energy sector, security related issues and difficult investment climate coupled with persistent fiscal imbalances widely contributed to hampering economic growth of pakistan. Taxation papers are written by the staff of the european commission s directorategeneral for taxation and customs union, or by experts working in association with them. As discussed in the introduction, we do not have any a priori expectation about the sign on the coef. Digital inclusion and mobile sector taxation in pakistan gsma. Corruption and economic growth 69 an educated labor force is better at learning, creating, and implementing new technologies, which generates a higher rate of productivity growth.
Until fy2015, the overall tax to gdp ratio varied between 9. For further details and explanation, please refer to the section how to read the countryeconomy profiles on page 89. According to the pes 20142015, pakistans tax revenue as a percentage of gdp has declined significantly in the past. The budget statement fy 2015 proposed to introduce a tax procedure bill with a view to harmonize and consolidate the procedural rules that govern tax laws in kenya. In nominal terms gap is wider above 10 times than ppp terms below 10 times. We then build a simple model of the pakistans economy, and use the model to simulate the effects. Besides the documented economy, there is a black economy estimated at 37% of its overall economy, which is not documented and not included in the tax net economic survey of pakistan, 201516.
Pdf taxation effects on economic activity in pakistan. This article lists countries alphabetically, with total tax revenue as a percentage of gross domestic product gdp for. No economy or sub economies can be documented fully. Impact of war in afghanistan and ensuing terrorism on pakistan s economy. The main consultant firm of the gwadar development phases, lowcost land and labor are available, there is proximity to oil and gas resources and gulf countries, there are some agricultural and mineral resources, while there could be taxfree status for investments and trade. As of 2019, gdp of india is around of 10 times greater than pakistan. The tax procedures act tpa 2015 was assented into law on 15th december 2015 and effected through a legal notice issued on 14th january appointing 19th january.
Amendments proposed in the finance bill, 2015 will take effect from july 01, 2015, unless stated otherwise, once it. Tetra pak equipment tetra pak packaging tetra pak in the world processing solutions. Pakistan economy gdp, inflation, cpi and interest rate. Pakistans economy but the share of this sector in total tax. How to file your income tax returns with itr1 sahaj form. The imf has also stated that pakistan s economy is showing strong signs of rising growth and price stability.
Shadow economy in pakistan munich personal repec archive. Macroeconomic environment and taxes revenues in pakistan. Fiscal policy statement 201516 government of pakistan. Our mission is to improve the quality of life for pennsylvania citizens while assuring transparency and accountability in the expenditure of public funds. In the past, pakistans economy has faced enormous challenges for. The currency used in the model for monetary analysis is the united states dollar based on 2015 exchange rate. India is 5th largest country of the world in nominal method and 3rd largest economy in ppp method. Taxation papers are intended to increase awareness of the work being done by the staff and to seek comments and suggestions for further analyses. Economic indicators for pakistan including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and shortterm predictions for pakistan economy.
Forecasting tax revenues using time series techniques a. In the decade since the global financial crisis, countries in the middle east and central. Pakistan has the potential to nearly double its current tax revenuetogdp ratio. Pakistans economic woes dwindling foreign exchange reserves, low exports, high inflation, growing fiscal deficit, and current account deficit are nothing new, and once again, the country finds itself knocking on the doors of the international monetary fund imf for what will be its 22 nd loan. This page provides pakistan gdp growth rate actual values, historical data, forecast, chart, statistics, economic calendar and news.
With the construction of cpec the current sea rout 12500km across the strait of malacca will be replaced which open a new route for the developing economy mengsheng, 2015. Published in the express tribune, august 26th, 2015. Tax revenue % of gdp international monetary fund, government finance statistics yearbook and data files, and world bank and oecd gdp estimates. Pakistan is located in southern asia, and borders afghanistan, the peoples republic of china, india and iran, with about 1,000 kilometers of coastline along the gulf of oman and the arabian sea.
It also executes acquisitions and disposals and plays a lead role in corporate governance. Tetra pak news in 2015 in figures 2016 biglinjer biobased cap and neck. Fiscal development fiscal policy is an effective tool for resource. Contribution of services sector in the economy of pakistan. The macroeconomic benefits of tax enforcement in pakistan. The global competitiveness index in detail the global competitiveness report 20152016 289 2. Notes on income tax laws tax year 2012 muhammad ovais, deloitte th mfc 3 company. While the exact amount of this package has not been determined, pakistan already owes the. The constant leading power cutoff challenge has troubled the economy. Inequality has many different dimensions race, gender, geography and economy. There is no tax treaty between pakistan and afghanistan.
Statues includes actordinances, rules, circulars, circular letters, general orders, original and amending notificationssros whereas caselaws includes head notes and complete judgments of supreme court, high courts, appellate tribunal and fto. Overview of the economy iii bales in 2016, down 4 percent from the previous year due to high input and financing costs. How mobile taxation in pakistan impacts the economy. Pakistan s economy has faced enormous challenges in the past owing to longstanding structural issues. It is a member of the world trade organization, part of the south asian free trade area agreement and the chinapakistan free trade agreement. List of countries by tax revenue to gdp ratio wikipedia. Every year, the budget process in kenya culminates in the enactment of a finance act. Income tax on agriculture suspended since oct in punjab. Adviser to pm on finance and revenue planted a sapling in the lawn of ministry of finance.
The last article iv executive board consultation was on june 14, 2017. Learn more about the pakistan economy, including the population of pakistan, gdp, facts, trade, business, inflation and other data and analysis on its economy from the index of economic freedom. Commodity wise collection of sales tax from domestic market. Pakistan was a middle class and predominantly agricultural country when it gained independence in 1947. The system consists of complete record of statutes as well as caselaws. The share of agriculture in the economy is about onefifth but its share in total revenue is less than 1%, depicting huge tax evasion in. Fbr federal board of revenue government of pakistan.157 908 16 796 10 986 867 1026 1174 359 878 1326 1386 407 868 1344 1227 57 354 925 720 761 506 920 144 1399 883 1555 365 1402 850 694 775 689 1322 743 1434 985