TAX BURDEN AND INCOME DISPARITIES – A

REVIEW OF PAKISTAN’S TAXATION SYSTEM

Adnan Zulfiqar Mirza, Hassan Jalil Shah & Tahir Mahmood*

Abstract
This article explores the effects of taxation system of Pakistan, especially indirect
taxes, on the distribution of wealth between the rich and poor. The purpose is to
determine the tax burden and the resultant income disparities focusing on the poor
segment of the society. Pakistan’s taxation system emerged from the ashes of British
colonial rule and so it absorbed exploitative and iniquitous tendencies. With a large
population living below the taxable threshold, reliance of the government to use
indirect taxation as a mean to raise the tax to GDP ratio reduces the welfare dividend
and compounds income inequality. This produces a cyclic process of economic
inefficiencies and distortions which inadvertently widens the socio-economic gap. This
article also proposes a Tax Revenue Strategy to policy planners to mitigate the effects
of negative economic distortions arising out of weak taxation structure to reduce
income inequalities.

Key Words: Direct and Indirect Taxes, Vertical and Horizontal Equity,
Progressive, Regressive, Distortions

Introduction

T he question of how to widen the tax net has baffled every government as it
always faced difficulty in choosing the appropriate instrument(s) or the
right tax mix to raise revenue. No government can perform its functions
and meet the domestic social, economic and defence needs without a sound
revenue base and the only way to generate sound revenue is through an
effective tax system. In Pakistan, the challenge is exacerbated as people avoid
paying taxes, lack trust in government’s handling of its finances and above all
the bulk of the population resides below the minimum taxable threshold and
hence cannot be optimally taxed. Moreover, the poor class in our society lives in
the “informal sector” where tax collection is difficult, costly and the return is
low due to abject poverty.1 In this situation, the essential question remains as to
what can be the optimal tax mix for revenue generation that doesn’t overtax the
poor or leave the rich under taxed. Gross income inequality amongst the
masses, ineffective service delivery and excessive government expenditures
prohibit cultivation of a conducive tax climate which responds to the needs of
the government and the society.

*
Mr Adnan Zulfiqar Mirza is a graduate of National Security and War Course and Dr Hassan
Jalil Shah is registrar of National Defence University, Islamabad and Dr Tahir Mahmood is
currently serving as Assistant Professor at School of Economics Quaid –i- Azam University,
Islamabad.

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Many consider that increase in rates of taxes will enhance the tax to GDP
ratio. Although a convenient option, there are long term ramifications of such
an undertaking as any increase directly impacts the economic activity and the
consumption behavior of the people thereby affecting revenue generation the
policy aims to increase. Also, the size of “shadow” economy in our country is
increasing and the true potential and magnitude of this economic reality is little
known. When imposed, taxes do not discriminate between the rich and poor
but they do enhance the relative income disparities by causing reduction in the
amount of capital in the hands of the consumer. Whenever there is greater
reliance on indirect taxes, the tax burden on the poor class will be more than
the affluent class which leads to uneven distribution of wealth. Aforesaid in
view, there is a need to study the effects of current system of taxation on the
common man and how these can be mitigated through a more equitable tax
system.
There has been no worthwhile research on the issue of vertical and
horizontal equity with regard to Pakistan’s system of taxation that analyzes the
tax burden on the common man. This research is an effort to study the effects of
taxation, both direct and indirect, on the distribution of wealth and the income
disparities arising thereof focusing on the poor segment of the society. It is
hoped that the proposed strategy at the end may provide some insight and food
for thought for policy planners to make the system of taxation more responsive
to the needs of the poverty stricken.

Methods and Sources

This exploratory research is based on interpretivist approach / qualitative
framework to gain deeper understanding of the problem through the lens of
individual and group experiences. The qualitative research was based on a series
of in-depth and semi-structured interviews with the subjects specialists,
followed by visits to FBR, Finance Division and provincial tax collecting
authorities. Interviews with government officials and taxpayers from all social
segments helped in understanding the problem from different standpoints. This
use of ‘Phenomenology’ permitted empathetic and objective valuation of their
experiences in order to make objective assessments.
The research also incorporates study of latest and updated reports as well as
available literature on the subject of taxation in Pakistan. The data has been put
together utilizing both primary and secondary sources including use of survey
questionnaire, printed literature and wherever required web resources to fill the
gaps with latest data / information. Reports such as the Economic Survey of
Pakistan from 2005-2018, Financial reports of the State Bank of Pakistan, IMF
Reports on the taxation measures in developing countries, World Bank and FBR
resources including their biannual reviews encompassing reports from the last

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TAX BURDEN AND INCOME DISPARITIES 101

15-20 years were consulted. Video lectures and talks by experts organized in the
National Defence University also provided immense and valuable information
to embellish this work besides providing new vistas for further exploration.

Structure of Taxation in Pakistan

The problem of taxation in Pakistan has been chronic, being one of the
main reasons propelling consistent fiscal deficits over the past. Lower tax
morale, tax evasion and high compliance costs have been few major challenges
that have constrained FBRs capacity to generate sufficient revenue for the
Government.2 With limited financial levers available, the Government is unable
to spend on social sector development which further erodes the confidence of
the taxpayer in the Government’s ability to provide public goods. A critical
analysis of the existing taxation strategy and shortfalls in the implementation
methodology is imperative to understand the complex matrix of Pakistan’s tax
structure and how it affects the socio-economic condition of the peoples down
the social ladder. Before any in-depth analysis, a brief understanding of the
nature and types of taxes is essential to comprehend the issues.
Pakistan follows a mix of direct and indirect methods of taxation to raise
revenue with the lion’s share tilted profoundly towards “indirect taxes” (Figure
1). As evident from the name, indirect taxes are regressive3 in nature as they
usually target consumption. On the other hand, direct taxes are levied on
salaries, profits, dividends according to their scale as a share of percentage.
Hence, these are progressive and more equitable than indirect taxes.
Figure 1: Proportion of Direct & Indirect Taxes in Overall Revenue 2017-18

Direct Taxes
40%

Indirect
Taxes
60%

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With such a huge share of indirect taxes in the overall “Tax Mix”, the
resultant regression in the tax mechanism is natural which fosters income
inequalities rather than reducing them. Countries with high tax to GDP ratios
adopt a policy of progressive taxation which caters well to address the income
inequalities in the society. Contrarily in Pakistan, the incidence of indirect
taxation directly impacts the entire social structure oppressing the poor and the
affluent alike without discrimination.

Federal and Provincial Tax Collection

According to the Constitution of Pakistan, the power to tax is delineated
between the Federal and the provincial governments. The provinces are to
administer taxes on more challenging tax bases such as agriculture, services,
property etc. Provinces contribute barely 4 -7 % of the total revenues. On the
contrary, they receive 35 % from the Government to meet their own
expenditures. This gap is clear manifestation of poor collection on the part of
provincial governments. This burden of the Federation often is the main reason
for increasing reliance on indirect taxes. Provincial taxes include property tax,
excise duties, stamp duties, motor tax etc.

Direct Taxes
Direct taxes contribute 40% of total revenue collected by the government.
Income tax alone contributes 28% within which only 4% is collected from
personal income taxes.4 This poor collection leaves the government with little
choice but to levy more number of indirect taxes to address the shortfall.

Indirect Taxes
Developing countries are often challenged by larger segments of poor
population and only a small percentage of the elite or the affable class. Hence,
in such situations indirect taxation emerges as the predominant tool for revenue
generation owing to a very narrow tax base, very high compliance costs and an
unusually large informal sector that is quite difficult to document as well as
luring in into the tax net. In addition, accomplishing a better redistribution of
the tax burden as well as enhancing progressivity become an onerous task. It is
unfortunate that “indirect tax” has become an indispensable tool in the hands of
the government to enhance revenue. In Figure 2, the trend of steady rise in the
scale and magnitude of indirect taxation is clearly visible. Mostly, in our context
indirect taxes include the Sales Tax on consumption, the Federal Excise Duty
(FED), Custom Duty, Petroleum levy etc.

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Figure 2: Trend of Increase in Regressive Taxation

Source: The Global Economy.com, the KPMG

Federal taxes were 92% of the total collections in 2015/16. In the year 2016/17
the revenue collection improved by 8.2% compared to the preceding year. In the
year 2017/18 the revenue collection increased by another 14.1%.5 Sales Tax, a
major indirect tax, has the largest share in the total which is 36% and is the lion
share holder. Income tax is next at 33%. Custom duties and excise duties are at
11% and 5 % respectively. Provincial taxes are about 7% of the total revenue.
Compared with India, the provincial share is very low as Indian states
contribute almost 35% of their total revenue which is quite high. On the
average, almost 60% of the total revenue collected by the government is
received from indirect taxes which is quite a high percentage. Due to the huge
share, it is evident that a very large segment of the population belonging to the
poor class is significantly affected by the same.

Distortions in the System of Taxation

Limited information is available on vertical and horizontal equity of our tax
system in the existing knowledge base. Also, various economic sectors have
been treated differently and often out of sync with their inherent potential
which makes the system of taxation distortionary and opening ways for income
disparities. When we take into account the share of major economic sectors in
the GDP, as shown in Figure 3, we observe that Services Sector has always held
the lion’s share in the overall GDP since 1999-2018 which amounts to more than
50% approximately, however, it only contributes around 30-35% in taxes.

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Likewise, agriculture holds a share of 20% in our GDP but its contribution in
taxes is barely 1%.6
Figure 3: Share of Major Economic Sectors in GDP (1999–2018)

80

60

40

20

0
Agricultural Sector Industrial Sector Services Sectors

Sector/Industry 1999-2000 2000-01 2001-02

2002-03 2003-04 2004-05 2005-06
2006-07 2007-08 2008-09 2009-10
2010-11 2011-12 2012-13 2013-14
2014-15 2015-16 2016-17 2017-18

This imbalance diverts heavy investments towards least taxed sectors and
withdrawal or reduction of economic activity in heavily taxed sectors. Thus, a
developing country which is not managing the allocation of its economic
resources well is compromising on the magnitude of revenue collection as well
as retarding the pace of growth. The arising mismatch of resources increases
the tax burden in certain areas and also increases the burden of honest tax
payers as the government will be forced to levy new taxes to make up for the
shortfall induced by an underperforming sector. This act of the government will
further affect the economic efficiency and thus produce an undesirable cycle of
poor economic performance in addition to compounding horizontal and vertical
iniquities.

Underground (Shadow) Economy

This is a major drain on the state as it functions out of the tax net and is
neither “observable” nor “auditable”. At present, the size of our undocumented
economy is estimated to be 70-80% of the GDP7 which means $100 billion
dollars or 13900 billion rupees.8 This is quite huge and a serious drag on the
states’ revenue collection. The question of revenue collection is not as serious as
the revenue lost due to lack of documentation. Shadow economy occurs when
the economic activity circumvents the existing regulatory channels of the
government. It is mainly caused by illiteracy, cash transactions, non-banking
transactions, lack of invoice culture, flourishing small scale traders, smuggling

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etc. Complex rules and regulations of taxation, high tax rates, and lack of
confidence on the part of taxpayers on the tax system further complicate it.
Also, a narrow tax base results in a higher tax rate which in turn compels more
people to the folds of undocumented economy. Size of the informal economy in
Pakistan in 2008 ranged between a massive 74 to 91 percent of the formal
economy.9 As per the Labour Force Survey of Pakistan (2010-11), almost 74 per
cent of the non-agricultural labour force is earning livelihoods through the
informal sector, and of the total employed labour force, 40.6 per cent or 21.8
million relied directly on the informal economy for their sustenance.10 A large
informal sector compels the government to seek foreign aid, easy loans and
grants hence pushing the country towards a vicious debt cycle which impacts
the national economy.

Tax Incidence and Distributional Effect

Our society is largely composed of poor class / lower middle income class
whereas the wealth is saturated within a narrow group of elite class at the top;
the middle class being a modest chunk of the population. It has been a real
challenge for every government to collect taxes from the elite class and
redistribute the effect to the lower echelons of the society. According to a recent
report by Oxfam titled “Commitment to Reducing Inequality (CRI) 2018”
Pakistan has been ranked at 137th position out of 152 countries which is quite
low. In terms of progressive taxation, it has been ranked at 98.11 The report also
highlights that many of the low earners in the society are women who are often
paid lesser than men and are mostly working in a non-secure work
environment. In such circumstances, it becomes extremely challenging to
mitigate the effects of income disparities. Besides, the income disparities are
further aggravated as the elite and affluent attempt to pass the burden of tax
onto the lower classes. Thus, it becomes difficult to correctly assess where the
tax incidence exactly lies.
In order to understand tax incidence we can make use of two important
terms namely, Statutory incidence and Economic incidence. The former implies
as to who is bound legally to pay the tax and the latter means the exact
distribution of the effect of tax on either the buyer or seller. In our
environment, due to a plethora of indirect taxes, the burden usually shifts to the
consumer and this makes the plight of common men even more difficult. The
relative growth in the indirect means of taxation has not been in sync with
direct taxes and the magnitude of relative growth between the two is not steady
as evident from Figure 4, when we take into account growth over a period of
decade, 2008 to 2018.

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Figure 4: Comparison of Direct and Indirect Taxes (2008-2018)

2,500,000
2,000,000
1,500,000
1,000,000
500,000
0

Direct Taxes Indirect Taxes

Source: State Bank of Pakistan

In order to elucidate the burden of a particular tax on common man a
simple example will be helpful. Let us assume two different items such as milk
and biscuits for the purpose. Each item has a unique value in terms of its utility
for the producer and seller. Milk is an essential commodity and used invariably
everyday in each household for making tea, cereals, feeding, desserts etc.
Accordingly the demand for milk will always be “Inelastic” i.e. even if its price
goes up it will be difficult for people to stop consuming milk. People will
continue to buy milk albeit in a lesser quantity. On the other hand, biscuits are
not as vital in everyday life as milk. Thus, the demand for biscuits will always be
“Elastic” which implies that if the price of biscuits goes up the buyer may not be
very keen to buy them and shift to cheaper substitutes. Plotting this on a graph
in Figure 5, we can deduce that the burden of tax when the demand is inelastic
is on the buyer compared to the seller/ producer. Initially, the equilibrium price
of milk was $10. When a new tax is imposed (indicated by red arrow on the left)
the equilibrium is disturbed and the price goes up and the same milk is
available for sale at $14. This entails that the consumer is compelled to pay
additional $4 to get the same amount of milk which may force him to decrease
his milk consumption. The seller/ supplier also receives $8 instead of the old
equilibrium price of $10 as the new price wedge, created by imposition of new
tax, causes a reduction in the demand for milk leading to price readjustments at
$14 and $8 for the consumer and supplier respectively along the S2 supply curve
(Figure 5). Thus, the supplier receives $2 lesser than his usual profit. This
indicates that a tax on consumption or any indirect tax creates a burden on the
poor, reduces the profit of the seller and this results into an economic
inefficiency in the milk market. As the demand for milk is inelastic, the market

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continues to function but its vibrancy is relatively reduced due to drop in

demand triggered by the new tax.
Figure 5: Tax Incidence Inelastic Demand

In the 2nd example (Figure 6), we analyze the market of biscuits, the
demand for which is ‘elastic’. In this case, the new tax reduces the demand by a
significant margin (from 80 to 50 as shown along x axis). As the consumers can
survive without biscuits, therefore, stop buying biscuits and move to other
substitutes. The tax burden is greater on the seller. This forces the supplier to
produce less which may lead to closing of business, job layoffs etc. This results
into other economic inefficiencies in the system.
Figure 6: Tax Incidence – Elastic Demand

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Such analysis is vital in order to frame correct taxation policies to ensure

tax incidence does not spread unevenly which may enhance income disparities.
The government needs to be cognizant of the fact that the burden of tax will
always be borne by the people because businesses, even if they apparently bear
the burden of taxes, still make all out efforts to pass on the liability to the
buyers.
Taxation affects the economy in many ways. Imposing a new tax raises the
price of a commodity for the buyer, reduces return for the seller and slows down
the market of that commodity which is called the Deadweight Loss (DWL).
When the government increases an existent tax or imposes a new and larger
one the magnitude of the DWL will be equally large. For example, if the
government doubles an existent tax then the net effect on DWL will be more
than double. Refer to Figure 7. When a country has high tax rates then the
implication of raising these further may be detrimental to the economy.
However, lowering them will benefit the government. On the other hand, if tax
rates are already low then raising them will not have much harmful effect,
however, further reducing them will also not be of much benefit. An increase in
the size of a tax causes an increase in government revenue in the early stages,
however, eventually the revenue declines as the tax causes the market to shrink.
Figure 7: Deadweight Loss (Economic Inefficiency due to Tax Variations)

Research Findings
Overall, the study has concluded that share of indirect taxes within the
federal and provincial tax codes is quite large and difficult to be dispensed with
at the outset, especially when the government is faced with a huge debt and

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balance of payments crisis. However in the long run, for better economic
efficiency, it is vital that as the tax base is widened then correspondingly the
share of indirect taxes be gradually reduced. This will not significantly affect net
revenue collection as the reduction effect will be nullified by the expansion
effect achieved at the tax base. Reduced burden of taxes will propel economic
activity by leaving a larger share of after –tax income in the hands of the
consumers which is vital for boosting aggregate demand and attaining increased
growth. Thus, the hypothesis of the study stands proven that reduction in
percentage of regressive taxes will not reduce the future net revenue collection;
rather it will be conducive to socio—economic well - being of the masses at the
lower level who in turn will expand the tax base, and hence the net revenue,
when they move upwards in the socio-economic ladder.
A few more specific findings of the study include:

a. Pakistan’s taxation system, inherited from the British days, had been
slow to transform and internalize according to our native cultural and
socio-economic needs.
b. The poorer ones pay more “in proportion” than the affluent class in
terms of indirect taxes despite the fact that the richer pay more ‘in
magnitude” for the same type of taxes.
c. Increased distortions in the tax system create economic inefficiencies
and poor service delivery giving rise to inequality and social tensions
creating an imbalance in the society.
d. Higher rates of indirect taxes increase DWL which reduces purchasing
power of common people and enhances income disparities.
e. The benefit provided to the taxpayer in the form of services may be
neutralized or minimized by the accruing DWL in terms of market
inefficiency induced.

Recommendations
Since a new government has assumed the charge at the Centre, the urgency
to implement and sustain a reform agenda in the tax code is the only solution
for better fiscal management. Only an adaptive and responsive tax system can
meet the needs of the globalizing economic environment. In the ensuing paras,
a possible strategy to enhance revenue has been proposed, which provides a
road map to making the tax system more equitable, mitigate effects of income
disparities and achieve better redistribution of wealth:

 The taxation system should be made more progressive and internalized

to our socio-economic needs by reducing the percentage of indirect
taxes to reduce burden on poor. High concentration of indirect taxes
leads to evasion and non-compliance. Equity in tax system should be

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achieved through the “Ability to Pay Principle’. This implies rich and
poor pay according to the proportion of their incomes and profits.
Progressivity will be achieved when deterrence is effective against
evaders, especially the rich and elite to bring them into the tax net.
Effective intelligence, monitoring and surprise audits are needed to
ascertain wealth and prohibit evasion. FBR must deal with the services
sector with an iron hand as it remains under taxed due to on spot
bribery, underwriting tax obligations and profits whereas most of them
charge hefty amounts from the poor class for the services rendered.
Increased progressivity will reduce share of regressive taxes.
 Lowering of tax rates is yet another form of curbing evasion and easing
out the poor class. This should be done in local industry market to
ensure that small markets don’t lose vibrancy. Initially, the government
may lower tax rates by small fractions to incentivize the consumers and
sellers followed by higher reductions, tax concessions etc. This will also
help in taxing a larger segment of people through low rates and help
achieve better, or at the minimum, the same level of revenue being
collected when the rates were higher through a broadened base.
 The government should minimize DWL (deadweight loss) arising out
of taxation in every commodity market where the demand is inelastic.
This will help generate a more efficient economic activity as well as
reduce the burden on the consumer. This implies designing a tax
instrument according to market efficiency of each commodity i.e. the
government may impose tax on a wide range of goods and services but
it may have different rates for each.
 In order to achieve equitable effects in taxation in the rural domain, the
government may consider bringing landlords with large landholdings
into the tax net. As agriculture remains a soft sector from taxation
point of view, there is a need to gradually reform this area. Presumptive
taxation (tax in advance) can be initiated as a test case for levying tax
on agriculture. One way to do so is to estimate the size of the land, the
productivity of the land and an assessment of the input costs specific to
that area. Once the crop has been harvested, the final liability can be
adjusted to collect revenue. Such measures will reduce the need for
huge subsidies in the agriculture sector and allow the government to
utilize collected revenue on reducing income gaps in the rural sector
through provision of allied services and facilities such as healthcare,
education etc.
 Government’s tax policy must be able to sustain and endure internal
pressures from vested groups and pressure tactics especially in policy
formulation and implementation. The introduction of numerous
concessions, tax exemptions providing relief to the affluent create

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distortions in the tax system. Such practices taint government

legislation on tax matters impairing Government’s ability to enforce
and implement an equitable tax strategy.
 After the mainstreaming of FATA, the Government at the federal and
provincial levels need to devise smart taxation instruments specific to
the tribal environment which do not inhibit growth and economic
activities and aim to forestall income disparities right from the outset
besides creating jobs for the poor and neglected. While the government
writ has extended to all areas under its sovereign control, the tax
treatment of FATA cannot be meted at par with other areas of the
country to avoid any disillusionment amongst the inhabitants. Instead
their confidence must be restored through increased spending in the
early years by the government to boost confidence amongst the masses.
This will help in achieving smoother transition of an impoverished area
into a relatively developed area like others.
 The government must expend the revenue in areas of maximum impact
such as public infrastructure, health and education which will help
motivate the people and cultivate a positive atmosphere for an
enduring tax climate in the country. Increase in tax revenue, when
sustained over a long period of time, can increase fiscal space of the
government. Enhanced fiscal leverage with the government can also be
used to invest in the economy which can propel economic growth
thereby creating a cyclic process of increasing revenue over a period of
time. The additional benefit can then fund more poverty stricken
people to elevate their status above poverty level.

Conclusion
The inferences drawn from this research ratify the fact that distributional
effect of taxation in our environment has not been optimal due to larger share
of regressive taxation. The existence of an ever growing informal sector and the
pace with which it is expanding must ring alarm bells before it is too late. If this
informal sector is documented, beginning from the larger and more productive
units in the economy, their contribution, albeit slowly but assuredly, is likely to
increase the revenue.
The main objective of the government in Pakistan should be to recalibrate
the existing tax system in a manner that tax reduces economic burden on the
common man and also maximizes the component of social welfare. The
conclusions thus support the notion that decrease in tax rates are likely to
increase the revenue collection rather than the contrary, as widely believed. We
can presume that lowering the tax rates has a positive relationship with
economic behavior of subjects within the state. Also, greater reliance on indirect
taxation will disrupt the vertical equity of the tax system. It is vital, therefore,

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that the government should endeavor to evenly distribute the burden of taxes
rather than merely rely on indirect taxes as the sole mean of revenue generation.
Adam Smith reiterated this notion as under,
“The subjects of every state ought to contribute towards the support
of the government, as nearly as possible, in proportion to their
respective abilities.”

― Adam Smith, The Wealth of Nations

Endnotes

1
Chaudhry, Imran Sharif, and Farzana Munir. “Determinants of Low Tax Revenue
in Pakistan.” Pakistan Journal of Social Sciences, 2010, 439–452.
2
Cyan, Musharraf R., Antonios M. Koumpias, and Jorge Martinez-Vazquez. “The
Determinants of Tax Morale in Pakistan.” Journal of Asian Economics 47
(December 1, 2016): 23–34. https://doi.org/10.1016/j.asieco.2016.09.002.
3
“The Poverty Implications of Alternative Tax Reforms: Results from a Numerical
Application to Pakistan.” Policy Research Working Papers. Accessed May 19,
2019. https://elibrary.worldbank.org/doi/pdf/10.1596/1813-9450-8164.
4
Musharraf R. Cyan and Jorge Martinez- Vazquez, Pakistan’s Enduring Agenda
for Tax Reforms, In Jorge Martinez-Vazquez and Musharraf Rasool Cyan, The
Role of Taxation in Pakistan's Revival (Oxford: Oxford University Press,2015).
5
Government of Pakistan, Federal Board of Revenue Year Book 2017-18
(Islamabad: Federal Board of Revenue, 2018).
6
Pakistan GDP Distribution across Economic Sectors 2017 Statistic.” Accessed
January 6, 2019. https://www.statista.com/statistics/383256/pakistan-gdp-
distribution-across-economic-sectors/.
7
Jorge Martinez-Vazquez and Musharraf Rasool Cyan, The Role of Taxation in
Pakistan's Revival (Oxford: Oxford University Press, 2015).
8
J.Martinez Vázquez, & M. R. Cyan, Pakistan’s Enduring Agenda for Tax Reforms,
Page 18. In J. Martinez Vázquez, & M. R. Cyan, The Role of Taxation in
Pakistan's Revival. Oxford: Oxford University Press.
9
Qazi, Ghulam Mustafa. n.d. “Business Climate in Pakistan-Challenges and
Remedies,” 113.
10
Tahir, Nadia. “Informal Employment in Pakistan: Survivalist or Structuralist?,”
n.d., 13.
11
Lawson, Max, and Matthew Martin. “The Commitment to Reducing Inequality
Index 2018: A Global Ranking of Governments Based on What They Are Doing
to Tackle the Gap between Rich and Poor.” Development Finance International;
Oxfam, October 9, 2018. https://doi.org/10.21201/2018.3415.

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