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Pakistan Doesn’t Need Extra Taxes To Fulfill The Shortage of Income


According to the report revealed by the Pakistan Revenue Mobilization Project, World Bank says in report that Pakistan does not have to pay additional taxes to cover its shortage of income. The World Bank had to say in its report that Pakistan could get a reasonable tax without raising new taxes and raising its rates. The report said that at present the share in the tax revenue is very small for Provinces, but over time it has increased, which was 0.4 percent in 2010-11, now has increased by 1.2 percent to 2017-18. Despite this, the overall performance of the country in tax has increased, which was 9.5 percent of growth rates in 2011-12, but by 2017-18 it increased by 13 percent.

It also said that in REPORT if the tax receipt is up to 75 percent then the tax of income will be up to 26 percent of GDP, which is a realistic level for a country with a middle income. The report said that tax authorities in Pakistan are currently successful in achieving only 50% of the revenue potential.


According to the World Bank, Pakistan’s Federal Board of Revenue (FBR) is not a regulatory institution with its work, nor does it have a clear rating on the other tax authorities of the world. The report said that FBR has a presence in the entire country where it has a total of 21,000 employees, of whom about two thirds work for the Inland Revenue Service (IRS) and one third for the Pakistan Customs.

In addition, the World Bank also said that the lack of cooperation between Provincial and Federal Government is negative impact on the country’s total tax revenue. Applying rules and regulations by federal and provincial governments, conflicts arise, especially in the case of tax payers; there are problems in adjustment issues. The World Bank has suggested in its report that Pakistan needs to increase its tax revenue to establish financial stability and investment environment.

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