The document discusses potential tax reforms in Punjab, Pakistan. It analyzes challenges with the province's current revenue collection and identifies key areas for reform. These include boosting collections from the services sector by strengthening the Punjab Revenue Authority; revisiting taxes on agriculture incomes by updating land tax rates and taxing actual incomes; and realizing potential from the Urban Immovable Property Tax by regularly surveying properties and revising exemptions. The reforms aim to broaden the tax base and increase equitable revenue collection in Punjab.
Budget Analysis of Union Budget 2017 in relation to amendments made in Income Tax Act, 1961 and Service Tax. A comprehensive and detailed analysis in simple language for better understanding of every class of readers.
Highlights of Changes in Direct & Indirect Taxes in 2016-2017 budget
Direct Tax include Income tax,CHANGES IN INDIRECT TAXES - (CUSTOMS ACT, 1962 ,CENTRAL EXCISE ACT, 1944 ,AMENDMENTS IN SERVICE TAX )
Budget Analysis of Union Budget 2017 in relation to amendments made in Income Tax Act, 1961 and Service Tax. A comprehensive and detailed analysis in simple language for better understanding of every class of readers.
Highlights of Changes in Direct & Indirect Taxes in 2016-2017 budget
Direct Tax include Income tax,CHANGES IN INDIRECT TAXES - (CUSTOMS ACT, 1962 ,CENTRAL EXCISE ACT, 1944 ,AMENDMENTS IN SERVICE TAX )
Union Budget 2017 - A Pitchfork Partners AnalysisAshraf Engineer
Finance Minister Arun Jaitley presented a Union Budget of many firsts today. Apart from integrating the Rail Budget into itself, the presentation was advanced to February 1 to enable better operationalisation. Also, plan and non-plan classifications were eliminated for a holistic view of allocations.
The Budget was presented in the wake of demonetisation and all eyes were on what the government would do next. The finance minister focused on rural development and agriculture, while laying emphasis on tax compliance, affordable housing and social investment as part of a 10-point agenda.
Here's an overview and analysis of the Budget.
To discuss the ongoing changes in the Indian Economy, Laws and Policies which are catalyzing the process of India becoming an attractive investment destination and to walk through the process of "Doing Business in India”.
This presentation has been prepared to give a glimpse of Union Budget 2017-18. It will come handy for management students who have Finance as one of their subjects.
Dear All,
Attaching herewith glimpse of the Budget 2016- Indirect Tax.
We have tried to capture all relevant aspects of the Budget which may impact on day to day business activities. Rate changes attributable to individual products and services are not covered.
Any suggestions/ feedback are most welcome.
Thanks and regards,
Nilesh Saboo
nilesh@bsllp.in
Greetings!!
Team ValuFocus is pleased to provide you a Glimpse of the Tax Proposals presented by Hon’ble Finance Minister during the Budget for the Year 2016-17. A snapshot of the changes has been covered in the note attached.
We would be pleased to hear any comments or suggestions on the same.
Missed out on the Union Budget 2017 Presentation?
Indian Finance Minister, Mr. Arun Jaitely has once again taken the nation by wave with his pro-poor, pro-growth, pro-middle class, pro-youth & paradigm shifting Budget. Read the highlights of the Budget here.
Union Budget 2017 - A Pitchfork Partners AnalysisAshraf Engineer
Finance Minister Arun Jaitley presented a Union Budget of many firsts today. Apart from integrating the Rail Budget into itself, the presentation was advanced to February 1 to enable better operationalisation. Also, plan and non-plan classifications were eliminated for a holistic view of allocations.
The Budget was presented in the wake of demonetisation and all eyes were on what the government would do next. The finance minister focused on rural development and agriculture, while laying emphasis on tax compliance, affordable housing and social investment as part of a 10-point agenda.
Here's an overview and analysis of the Budget.
To discuss the ongoing changes in the Indian Economy, Laws and Policies which are catalyzing the process of India becoming an attractive investment destination and to walk through the process of "Doing Business in India”.
This presentation has been prepared to give a glimpse of Union Budget 2017-18. It will come handy for management students who have Finance as one of their subjects.
Dear All,
Attaching herewith glimpse of the Budget 2016- Indirect Tax.
We have tried to capture all relevant aspects of the Budget which may impact on day to day business activities. Rate changes attributable to individual products and services are not covered.
Any suggestions/ feedback are most welcome.
Thanks and regards,
Nilesh Saboo
nilesh@bsllp.in
Greetings!!
Team ValuFocus is pleased to provide you a Glimpse of the Tax Proposals presented by Hon’ble Finance Minister during the Budget for the Year 2016-17. A snapshot of the changes has been covered in the note attached.
We would be pleased to hear any comments or suggestions on the same.
Missed out on the Union Budget 2017 Presentation?
Indian Finance Minister, Mr. Arun Jaitely has once again taken the nation by wave with his pro-poor, pro-growth, pro-middle class, pro-youth & paradigm shifting Budget. Read the highlights of the Budget here.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
Business Environment - Unit-5 - IMBA - Osmania UniversityBalasri Kamarapu
Business Environment - Unit-5 - IMBA - Osmania University
Unit-V
Economic Survey and Union Budget
Fiscal Policy and Present Tax Environment
Direct and Indirect Taxes
Concept of Value Added Tax
Current Year’s Economic Survey and Union Budget
Fiscal Policy and Present Tax Environment
Fiscal policy deals with the taxation and expenditure decisions of the government.
Some of the major instruments of fiscal policy are as follows: Budget, Taxation, Public Expenditure, public revenue, Public Debt, and Fiscal Deficit in the economy.
Fiscal policy means the use of taxation and public expenditure by the government for stabilization or growth of the economy.
According to Culbarston, “By fiscal policy we refer to Government actions affecting its receipts and expenditures which ordinarily as measured by the government’s receipts, its surplus or deficit.”
General objectives of Fiscal Policy are given below:
1. To maintain and achieve full employment.
2. To stabilize the price level.
3. To stabilize the growth rate of the economy.
4. To maintain equilibrium in the Balance of Payments.
5. To promote the economic development of underdeveloped countries.
budget analysis 2105 -2016
Union Budget, which is a yearly affair, is a comprehensive display of the Government's finances. It is the most significant economic and financial event in India. The Finance Minister puts down a report that contains Government of India's revenue and expenditure for one fiscal year.
Corporate Tax Reforms in Pakistan
Tax policy plays an important part in inclusive growth, incomes and wealth redistribution. Owing to a narrow tax base in Pakistan, the ability of taxes to alter distribution of incomes in favour of the poorest income quintiles has been limited. This paper specifically makes a case where private sector has been realizing anticipated profits however their rising incomes did not result in progressive changes in tax contribution. The ability of tax administrative machinery to check evasion has also remained weak.
Another important matter is how a distortive tax policy is preventing entry of new firms and investments which can potentially create greater competition and enhance consumer surplus. Since 2007 Pakistan’s economy has been witnessing low levels of investment. Despite low interest rates, the private sector credit has not picked up. The exports have declined during a period when Pakistan enjoys preferential market access from the European Union and the United States. While large firms operating domestically continue to growth, the survival and growth of new firms is weak.
According to several recent studies, part of the answer to this problem may lies in the way taxes are helping cartelization through exemptions and preferences in the direct (corporate) tax structure. We discuss this view in the light of recent tax directory published by the Federal Board of Revenue. Making use of the key informant interviews and focus group discussions involving the business community, tax officials, trade and consumer associations, we present some recommendations for the reform of corporate taxation in Pakistan.
Tax justice from 100 years old income tax law.pdfM S Siddiqui
Roughly 94 per cent of income-tax revenue comes from tax deducted at source. The Tax deduct as source (TDS) has been imposed at border during release of imported goods and services, supply of goods and services to government and corporates entities. This deduction is on gross sales value but not on net profit. The advances taxes are non-refundable and considered as tax on income. In many cases the tax burden are more than 100 percent of the net income of the business enterprises.
This report sheds light on the significance of digital trade integration for Pakistan and selected
Central Asian countries including Afghanistan, Kazakhstan, Tajikistan, and Uzbekistan. Digital trade
integration involves regulatory structures/policy designs, digital technologies, and business
processes along the entire global/regional digital value chain. Digital trade
integration requires free cross-border movement of not only digital products, services, and
technologies but also other manufactured goods, data, capital, talent, and ideas along with the
availability of integrated physical and virtual infrastructure. Hence, digital trade integration requires
the removal of digital trade barriers as well as extensive technology, and legal and policy
coordination between member states.
Countries around the world have actively engaged in establishing new and progressive bilateral and
regional trade agreements to boost trade and economic growth. The significance of digital trade has
increased considerably after the COVID-19 pandemic. Improvement in digital connectivity, ease in
regulations, and skilled workers are key factors to facilitate trade integration and promote the
growth of the e-commerce sector. The report examines the regional trade agreements of Pakistan
and selected Central Asian countries and their relevance for digital trade integration. It also
scrutinizes the challenges faced by the public institutions of Pakistan in the implementation of digital
trade policy. Besides this, the report also observes the challenges faced by SMEs dealing with digital
trade-related products.
The findings show that Pakistan and selected Central Asian countries are at different levels of digital
adoption, including mobile connectivity index and download speed of mobile and broadband.
Kazakhstan and Pakistan have a higher export and import volume compared with other countries.
However, neither country has any major trading partner from the countries selected in this study,
which demonstrates the lack of regional cooperation and the need for regional trade agreements to
boost bilateral and regional trade.
The report discusses the e-commerce laws of Pakistan and selected Central Asian countries, whereas
domestic policies and measures to increase digital trade are also reviewed. The countries are at a
different level in terms of implementing digital trade facilitation measures. Lack of effective
enforcement of intellectual property rights, non-tariff measures, foreign investment restrictions in
digital space, data and information costs, cyber security, and tax policy and administration are all key
policy issues that influence digital trade integration.
The study offers a way forward in which action points are provided for governments, the nongovernmental
sector (notably, business associations and networks), academia and think tanks, and
development partners. #DigitalTradeIntegration
#RegionalTradeAgreements
#EconomicGrowth
#DigitalConnectivity
#EcommerceLaws
The policy brief by the Sustainable Development Policy Institute (SDPI) outlines the urgent need to address the high consumption of Industrially Produced Trans Fatty Acids (iTFA) in Pakistan, which poses significant health risks, particularly in contributing to cardiovascular diseases. Despite being the second-highest per capita consumer of iTFA in the WHO-Eastern Mediterranean Region, Pakistan lacks comprehensive regulations and enforcement mechanisms to mitigate iTFA consumption effectively. The brief recommends a multi-faceted approach involving uniform standards, transparent enforcement, public awareness campaigns, capacity building for regulatory authorities, and collaboration with the food industry to promote healthier alternatives. It highlights the importance of political commitment, intersectoral collaboration, and public-private dialogue to successfully eliminate iTFA from the food supply chain and improve public health outcomes in Pakistan.
In his comprehensive analysis, Vaqar Ahmed highlights the challenges and impediments faced by Pakistan's trade and industrial policies, particularly concerning macroeconomic stability, energy shortages, rising costs, and regulatory constraints. The recent decline in the value of the Pakistani Rupee has further intensified issues for the manufacturing sector. The adverse macroeconomic conditions, including high inflation and a policy rate exceeding 20 percent, have hampered the sector's ability to secure working capital. Large firms' reluctance to operate in special economic zones due to supply-side gaps, coupled with global economic uncertainties, has delayed the next phase of the China Pakistan Economic Corridor (CPEC). Ends with some policy recommendations.
Creating a conducive environment for sustainable economic development, improve living standards for all citizens, and secure a brighter future for the nation.
Highlights the country's large and young labor force, with a 1.94% population growth rate and 65.5 million individuals actively seeking work according to the 2017-18 Labor Force Survey. However, the unemployment rate currently stands at 5.8%, with the highest rate (11.56%) among youth aged 20-24. In response, the government launched the Prime Minister's Kamyab Jawan Programme, allocating Rs 100 billion to support entrepreneurship and create employment opportunities for youth. This program encompasses six key initiatives, including the Youth Entrepreneurship Scheme, Hunermand Pakistan Programme, Green Youth Movement, Startup Pakistan, National Internship, and Jawan Markaz. By focusing on skills development, entrepreneurship, and youth empowerment, the government aims to address unemployment challenges and foster a more vibrant economy.
The Khyber Pakhtunkhwa Urban Policy aims to transform KP's urban centers into engines of social, economic, and cultural growth by promoting vibrant communities, sustainable practices, and economic opportunities. It focuses on inclusive development, infrastructure improvement, efficient governance, environmental protection, and cultural preservation, aiming to make cities globally competitive and provide a high quality of life for all citizens. This policy, reviewed every five years, provides a roadmap for urban development in KP, seeking to create a brighter future for its residents.
This study aims to explain the macroeconomic and welfare impacts of changes in indirect taxes brought about in response to COVID-19. We study whether the tax relief provided for in the federal budget for fiscal year 2020-21 was effective in providing relief to private enterprises and the trade sector. We also study whether production subsidies granted during the first wave of COVID-19 were effectively able to support firms in the agricultural sector. This assessment allows us to draw lessons that may be useful for designing tax benefit policies amid future waves of the pandemic or during other emergency times.
The Government of Pakistan has offered export facilitation schemes
to exporters with the objectives to lower trade costs and expand
output. Currently, nearly one dozen export facilitation schemes are
active. They also include those which are run by the Federal Board
of Revenue (FBR). The question of ‘effectiveness’ of such schemes
in boosting Pakistan’s exports has remained a consistent theme of
interest among policymakers, international development partners
and private sector. This policy brief builds on a firm-level survey,
conducted by the Sustainable Development Policy Institute (SDPI),
and is an attempt to understand the effectiveness, overall gains,
and shortcomings of four major export facilitation schemes offered
by the FBR, including Duty and Tax Remission for Exports (DTRE),
Manufacturing Bond (MB), Export Oriented Unit (EOU) and Export
Facilitation Scheme (EFS). The study aims to provide insights on how
best to improve design of Export Facilitation Scheme 2021, which will
absorb all other schemes by the end of 2023.
The Ministry of Commerce in Pakistan unveiled the National Tariff Policy 2019-24 (NTP 2019-
24) in November 2019. The core aims of the policy were to: i) remove tariff-related
anomalies in the short-term to lower businesses’ cost of inputs and increase their
turnover, ii) increase employment generation in the medium-term, and iii) gain
competitiveness and exports in the long-term.
After its announcement, there remains a need to analyze the effectiveness and
impact of the policy. SDPI team conducted primary research to assess the impact
of tariff policy on Small and Medium Enterprises (SMEs) with the help of a firm-level
survey.
This specific survey aims to bridge the evidence gap by providing an in-depth
analysis on the NTP-2019-24 impact in terms of its three prime objectives. Besides,
the study also attempts to understand the business community’s challenges and
expectations vis-à-vis tariff-related matters.
Digital trade is increasing rapidly throughout the world whereas digital platforms and Coronavirus have further enhanced the importance of the digital economy and digital trade. Countries are focusing on promoting digital trade and integration through various measures including free trade agreements and bilateral negotiations. This study examined digital trade as defined by WTO E-commerce work and USITC. The study included the items that come under the definition of digital trade and examined the digital trade volume of Pakistan from 2010-2020 through three-step methodology. This includes the identification of digital trade items based on Harmonized System at a six-digit level, examining trade volume for digital goods, and identification of top ten export and import items along with top ten markets for digital trade. Favorable government policies and measures have helped Pakistan in promoting digital trade flows. However, there is a need to develop information and communication technology infrastructure in Pakistan to flourish trading activities. Furthermore, Pakistan has to reduce the fiscal and trade barriers such as rules and regulations for foreign investment in digital space, data and information costs, and ensure online security and data protection to promote digital trade integration.
by Asif Javed & Vaqar Ahmed
This study presents a pathway for fostering regional digital trade integration through
South-South and Triangular cooperation. Our main study goals include answering the
following questions:
» What are the challenges faced in the digital trade sector of Afghanistan, Pakistan
and Sri Lanka? How can these be overcome through various cooperative models?
» How can inclusive regional and free trade agreements help to overcome barriers
and enable digital trade integration?
» What can Small and Medium Enterprises (SMEs) dealing with digital trade-related
products learn from literature on South-South and Triangular cooperation?
Suggested citation:
Ahmed, V. and Javed, M. Digital Trade Integration: South-South and Triangular
Cooperation in South Asia (unpublished). South-South Idea Paper Series, United Nations
Office for South-South Cooperation (UNOSSC),Washington D.C.New York, 2022.
Pakistan is facing numerous socioeconomic impacts of the Covid-19 pandemic, including on food security. Food insecurity, which is a long-standing issue, has become more visible since the pandemic. Covid-19 Responses for Equity (CORE) partner the Sustainable Development Policy Institute (SDPI) – a leading policy research thinktank – has been supporting the Government of Pakistan to maintain essential economic activity and protect workers and small producers during the pandemic. One notable contribution has been the development of a Food Security Portal, which is being used by the government to better manage food security in the country. It is the first track and trace system from farm to fork for essential food items.
URI
https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/17619
Citation
Suleri, A.Q.; Ahmed, V.; Ahmad, S.M.; Shah, Q.; Zahid, J. and Gatellier, K. (2022) Strengthening Food Security in Pakistan During the Covid-19 Pandemic, Covid-19 Responses for Equity (CORE) Stories of Change, Brighton: Institute of Development Studies, DOI: 10.19088/CORE.2022.008
Political and socio-economic discussions in Pakistan’s popular discourse are often inward-looking and generally focus on the country itself, or on its relationships to its immediate neighbors (Afghanistan, India, and China). We suggest here that Pakistan is part of a global system, as well. It is influenced not just by its direct neighbors, but also by: international events (war in Ukraine is just one example); by global economic factors (e.g. oil prices, changing terms of trade, or the danger of a global recession); and by various other global governance arrangements (e.g. Financial Action Taskforce and its demands from Pakistan). At the same time, Pakistan is not insulated from the global systemic changes. The global pandemic has overwhelmed the policymakers with possibilities of future epidemics also not being ruled out. In the past migration of people, both incoming and outgoing, has impacted the social fabric.
Likewise, the country is suffering from global warming and the resulting patterns of weather and precipitation. Pakistan is also a player at the international arena and is expected to play a responsible and proactive role at various global governance forums. The speech of the former Prime Minister of Pakistan at the UN General Assembly on September 27, 2019 has indicated regarding this responsibility and highlighted Pakistan’s role in the Cold War, or the engagement of Pakistani soldiers abroad, either in the United Nations peace keeping framework, or bilaterally. While many Pakistanis are aware of some of Pakistan’s international roles and dependencies, and of Pakistan’s image abroad, there is limited discussion about the country’s global role – what it should be? Who are the internal and external actors that shape Pakistan’s role, engagement, influence, and perception abroad? What role does the state and citizens play in deciding Pakistan’s global role? These are some of the questions that our chapter authors aimed to touch upon in this book. A conscious effort has been made to reach out to Pakistanis living and working abroad. Chapters have been invited from such resource persons who are not only Pakistanis but also study Pakistan from abroad and often through various lens external to Pakistan.
Web: https://pakistan.fes.de/e/global-pakistan-pakistan%CA%BFs-role-in-the-international-system
The Covid-19 pandemic and related
restrictions have had profound
socioeconomic impacts worldwide.
Governments have been faced with
responding urgently to mitigate such
effects, especially for the most
vulnerable. Covid-19 Responses for
Equity (CORE) partner Partnership for
Economic Policy (PEP) – a Southernled
organisation which believes that
evidence produced from an in-country
perspective, by empowered and
engaged local researchers and
policymakers, results in better policy
choices – has been working closely
with policymakers in Pakistan to
assess the Covid-19 impacts and the
effectiveness of current and potential
policies. As a result, PEP has helped
introduce tax reforms for the hardest
hit, agricultural subsidies for farmers,
and the reduction of trade tariffs for
struggling businesses.
Marginalization of Researchers in the Global
South in Global, Regional, and National
Economic-Development Consulting
Authors Ramos E. Mabugu | Vaqar Ahmed | Margaret R Chitiga-Mabugu
| Kehinde O. Omotoso
Date February 2022
Working Paper 2022-05
PEP Working Paper Series
ISSN 2709-7331
More from Sustainable Development Policy Institute (20)
A process server is a authorized person for delivering legal documents, such as summons, complaints, subpoenas, and other court papers, to peoples involved in legal proceedings.
This session provides a comprehensive overview of the latest updates to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly known as the Uniform Guidance) outlined in the 2 CFR 200.
With a focus on the 2024 revisions issued by the Office of Management and Budget (OMB), participants will gain insight into the key changes affecting federal grant recipients. The session will delve into critical regulatory updates, providing attendees with the knowledge and tools necessary to navigate and comply with the evolving landscape of federal grant management.
Learning Objectives:
- Understand the rationale behind the 2024 updates to the Uniform Guidance outlined in 2 CFR 200, and their implications for federal grant recipients.
- Identify the key changes and revisions introduced by the Office of Management and Budget (OMB) in the 2024 edition of 2 CFR 200.
- Gain proficiency in applying the updated regulations to ensure compliance with federal grant requirements and avoid potential audit findings.
- Develop strategies for effectively implementing the new guidelines within the grant management processes of their respective organizations, fostering efficiency and accountability in federal grant administration.
ZGB - The Role of Generative AI in Government transformation.pdfSaeed Al Dhaheri
This keynote was presented during the the 7th edition of the UAE Hackathon 2024. It highlights the role of AI and Generative AI in addressing government transformation to achieve zero government bureaucracy
What is the point of small housing associations.pptxPaul Smith
Given the small scale of housing associations and their relative high cost per home what is the point of them and how do we justify their continued existance
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Russian anarchist and anti-war movement in the third year of full-scale warAntti Rautiainen
Anarchist group ANA Regensburg hosted my online-presentation on 16th of May 2024, in which I discussed tactics of anti-war activism in Russia, and reasons why the anti-war movement has not been able to make an impact to change the course of events yet. Cases of anarchists repressed for anti-war activities are presented, as well as strategies of support for political prisoners, and modest successes in supporting their struggles.
Thumbnail picture is by MediaZona, you may read their report on anti-war arson attacks in Russia here: https://en.zona.media/article/2022/10/13/burn-map
Links:
Autonomous Action
http://Avtonom.org
Anarchist Black Cross Moscow
http://Avtonom.org/abc
Solidarity Zone
https://t.me/solidarity_zone
Memorial
https://memopzk.org/, https://t.me/pzk_memorial
OVD-Info
https://en.ovdinfo.org/antiwar-ovd-info-guide
RosUznik
https://rosuznik.org/
Uznik Online
http://uznikonline.tilda.ws/
Russian Reader
https://therussianreader.com/
ABC Irkutsk
https://abc38.noblogs.org/
Send mail to prisoners from abroad:
http://Prisonmail.online
YouTube: https://youtu.be/c5nSOdU48O8
Spotify: https://podcasters.spotify.com/pod/show/libertarianlifecoach/episodes/Russian-anarchist-and-anti-war-movement-in-the-third-year-of-full-scale-war-e2k8ai4
Many ways to support street children.pptxSERUDS INDIA
By raising awareness, providing support, advocating for change, and offering assistance to children in need, individuals can play a crucial role in improving the lives of street children and helping them realize their full potential
Donate Us
https://serudsindia.org/how-individuals-can-support-street-children-in-india/
#donatefororphan, #donateforhomelesschildren, #childeducation, #ngochildeducation, #donateforeducation, #donationforchildeducation, #sponsorforpoorchild, #sponsororphanage #sponsororphanchild, #donation, #education, #charity, #educationforchild, #seruds, #kurnool, #joyhome
3. 1
Table of Contents
1. Background .....................................................................................................................................2
2. Revenue Collection: Situation Analysis...........................................................................................2
3. Desired Reforms..............................................................................................................................4
3.1. Boosting collections from services sector:..............................................................................4
3.2. Revisiting tax on agriculture incomes:....................................................................................4
3.3. Realizing the potential of UIPT: ..............................................................................................4
3.4. Need to strengthen progressivity of taxes:.............................................................................4
3.5. Strengthen Grievance Redressal Mechanism (GRM):.............................................................5
4. Way Forward...................................................................................................................................5
5. References ......................................................................................................................................6
4. 2
1. Background
Provinces are gearing up for an active resource mobilization after the additional powers allowed
to them under the 18th Constitutional Amendment. The Punjab has three revenue authorities
namely: Punjab Revenue Authority (PRA), the Board of Revenue (BoR), and the Excise and
Taxation Department (E&TD). The provincial government has suggested in the medium term the
merger of all revenue collecting bodies.
Currently, E&TD is responsible for collecting Urban Taxes, e.g. Property Tax and Motor Vehicle
Tax. The BoR operates in rural areas and collect land revenue, agricultural income tax, and
stamp-duties. Following the 18th Amendment, the Punjab has created its own authority to
collect General Sales Tax on Services (GSTS). The PRA started with the collection and
enforcement of sales tax on services. Currently, this body is collecting sales tax on 14 services.1
In 2015, International Finance Corporation (IFC) launched tax reforms project in the Punjab to
reduce the compliance cost burden for the private sector and increase the GSTS net in the
province. IFC will conduct mapping of the GSTS system in Lahore to identify serious cost
constraints and bottlenecks, which private sector faces while complying with the regulations.
That will also include a legal and policy review, capacity and training needs assessment, and
organizational structure review. It was expected that the project would also develop a taxpayer
charter of rights and code of conduct.
The Punjab government has also decided to establish a dedicated Tax Reform Unit (TRU) within
the finance department for tax policy analysis. To conduct research in the field of collections and
highlight weaknesses in the system and suggest reforms to increase revenue of the province.
This policy brief makes an effort to highlight: a) key challenges faced by the province in
generating revenues, b) inefficiencies in the provincial tax administration and policy, and c)
difficulties faced by the private sector and individuals in complying with the provincial tax rules.
We also provide policy recommendations based on our interaction with law makers, private
sector, government officials, civil society organizations, and academia.
2. Revenue Collection: Situation Analysis
The provincial government missed its tax collection target of Rs164.5 billion for the year, 2014-
15, with a 39 per cent shortfall. This shortfall has been attributed to weak forecasting capacity,
obsolete methods of taxing incomes from agriculture and property, and a collection mechanism
that suffers from rent-seeking (Ahmed 2015, Ahmed 2015b).
The White Paper on Budget 2015-16 makes the confession that “currently, the Punjab
government has an incomplete picture of its tax system… while the main hindrance is a lack of
1 In the Budget 2012-13, the Punjab government had made a new legislation for sales tax on services titled the Punjab
Sales Tax on Services Act, 2012. The Punjab Sales Tax Ordinance, 2000 was repealed. Services on which tax is collected,
include: Hotels, Clubs, Caterers, Advertisements on T.V & Radio Including Cable T.V, Customs Agents, Ship Chandlers,
Stevedores, Telecommunication, Insurance and Re-Insurance, Banking Companies, Non-Banking Financial Institutions,
Stock Brokers, Shipping Agents and Courier Services.
5. 3
capacity, there is also a lack of reliable data — economic and sectoral data as well as taxpayer
data, which is used as the basis for assessing different taxes that need to be updated.” The
provincial income accounts are also not available in regular frequency at the Pakistan Bureau of
Statistics or the Punjab Bureau of Statistics.
Box 1: Punjab Provincial Tax Revenue Collection
PKR Million
Taxes 2014-15*
Agriculture Income Tax 1,000
Property Tax 8,742
Land Revenue 12,290
Tax-Profession, Trades & Callings 720
CVT on Immoveable Property 4,649
CVT on Moveable Property 240
Other Direct Taxes 11
Provincial GST 46,369
Provincial Excise 1,783
Stamps Duty 21,073
Motor Vehicles 10,284
Others Indirect Taxes 7,089
Source: Annual Budget Statement, Government of Punjab, *Revised Estimates.
Recent literature has also pinpointed potential issues with existing tax bases available with the
provincial government. For example, the Punjab Urban Immovable Property Tax (UIPT) - a local
government tax but collected by the provincial government, and then shared with local
administration, brings low levels of revenue (Box-1). Key reasons include old valuation tables, lack of
incentive for tax officials to improve their performance, exemptions and preferences allowed in the
tax schedule particularly for owner occupied properties (Nabi & Sheikh 2013).
Similarly under the Punjab Agriculture Income Tax Act 1997, the taxpayer is supposed to pay the
larger of, a) charge on cultivated land, or b) tax on agriculture income. Such a system is leading to tax
evasion as it is not compulsory for the farmers to file a return. They can get away by only paying the
acreage tax (PILDAT 2011).
6. 4
3. Desired Reforms
As part of this research exercise, SDPI team interviewed government officials, business
community, law makers, civil society and academia in order to prioritize the key reforms that can
fetch greater revenues with an additional objective of ensuring basic equity principles.
3.1. Boosting collections from services sector:
The legal status of PRA needs to be approved and strengthened by the provincial parliament
and appropriate cover given to its activities. The issue to double taxation, where Federal
Board of Revenue (FBR) is found to be charging excise on services-activities already paying
GST to the province, may be resolved. There are assessment problems which can be
resolved through a one-time census of services units in the province.
The Finance Act 2013-14 had introduced withholding tax (WHT) on builders, retailers, and
educational institutions. In addition, rates of WHT and advance tax have been enhanced in
case of professional services. Some of these income activities also fall under the preview of
provincial GSTS and such steps are likely to increase cost of doing business, reduce consumer
surplus and also increase the cost of compliance for taxpayers. There is a need to conduct a
detailed study on the incidence of provincial taxes.
3.2. Revisiting tax on agriculture incomes:
The current system of taxing through agricultural activity and land-based taxes is not
efficient. The land revenue rates are between PKR 100-300 per acre and need to be updated
on scientific lines. The land tax should be formulated in a manner that reflects potential
income from land. It was estimated, at 2010 prices, that potential tax revenue from
agriculture could range between PKR 55-75 billion annually (Nasim 2014). The penalties for
non-compliance are not effective. Appropriate legislative changes may be required to
strengthen and increase the capacity of collection department. A revenue-neutral reform
can be introduced where incomes from agriculture are taxed in tandem with a tax-cut or
otherwise reduction in the prices of inputs.
3.3. Realizing the potential of UIPT:
Regular survey of urban properties is required to ensure that rates under UIPT correctly
represent changes in property and rental values. The exemptions and preferences allowed
to various types of owners and users of property need to be revisited. The rating areas need
to be notified and revised regularly so that coverage of tax net can be expanded. The key
reasons of corruption and tax evasion are higher tax rates, differential between owner and
lessee-occupied rates, and differential between rates for same type and size of properties in
various cities across the country. Such anomalies may be corrected through appropriate
legislative and policy changes.
3.4. Need to strengthen progressivity of taxes:
7. 5
After the 18th Constitutional Amendment, progressive taxes, e.g. wealth tax, capital gain tax
on immovable property, estate duty and gift tax are within the powers of provinces. The
Punjab Assembly may introduce these progressive taxes through appropriate legislation.
Such taxes can augment the growth in provincial spending needed for health, education,
low-cost housing and public transport. The FBR may also be asked to remove any federal
exemptions or concessions allowed to provincial taxpayers.
3.5. Strengthen Grievance Redressal Mechanism (GRM):
A key issue faced by the business community in the Punjab is lack of appropriate and
effective GRM. The private sector wants that their ideas on increasing the efficiency of taxes
should be heard. A key recommendation from them is the desired reduction in the
frequency of tax payments. However, there are four different departments for which this
recommendation applies.2 None of them has a documented and publically communicated
GRM, which can guide the business community.
4. Way Forward
In the coming days, provincial revenue authorities are likely to establish a baseline of tax bases
for each of the taxes. They should be able to introduce IT-based business processes for tax
compliance to reduce human contact between taxpayers and payee. The GIS-based validation of
land holdings, commercial wholesale and retail activity may be pursued. A serious effort may be
made to improve the taxpayers’ information regarding provincial taxes, ideally through one-
window operation. The low yielding taxes such as cotton fee, entertainment tax and tax on
property transfers may be abolished.
The above-mentioned will require a reform of the tax collection administration. The merger of
E&TD, BoR and PRA may be expedited to ensure low administrative costs and better rapport
with the taxpayers. The provincial tax ombudsman may be appointed and strengthened with
judicial powers. Finally in order to ensure some level of social accountability a tax directory of
agricultural income tax and urban immoveable property tax payments should be annually
published and disseminated as part of the provincial budget.
***********
2 Three revenue collection bodies and Punjab Employees Social Security Institution
8. 6
5. References
Ahmed, V 2015, Fiscal Challenges and Response (Chapter 2), Roadmap for Economic Growth in
Pakistan, Islamabad Policy Research Institute, Islamabad, viewed 20 Jan 2016,
http://www.ipripak.org/wp-content/uploads/2015/04/roadmapb.pdf
Ahmed, V 2015b, Time for provincial tax reforms, The News on Sunday, Islamabad April 5, 2015,
viewed 20 Jan 2016,
http://tns.thenews.com.pk/time-provincial-tax-reforms/#.V479yKKtFqY
Nabi, I and Sheikh, H (2013), Reforming Urban Property Tax in Punjab. Consortium for Development
Policy Research, viewed 20 Jan 2016,
http://cdpr.org.pk/wp-content/uploads/2014/10/Urban-Property-Taxation.pdf
Nasim, A 2014, Agriculture Income Tax in Punjab, Consortium for Development Policy Research,
viewed 20 Jan 2016,
http://cdpr.org.pk/wp-content/uploads/2014/10/Agricultural-Income-Tax.pdf
PILDAT 2011, Taxing the Agriculture Income in Pakistan, Briefing Paper no. 42, Pakistan Institute of
Legislative Development and Transparency (PILDAT), viewed 20 Jan 2016,
http://www.pildat.org/publications/publication/EcoFinance/BP42-
TaxingtheAgricultureIncomeInPakistan.pdf