Pakistan Tax Policy Review Project, 2007-08
[Project Details]
Pakistan’s tax system has undergone significant reforms over the last two decades, leading to the modernization of direct and indirect taxes. More recent times have seen the rationalization of income tax rates, the introduction of self-assessment for filing income taxes, some expansion of consumption taxes, and the rationalization of the customs tariff structure with a reduction of tariff bands and maximum rates. The Central Board of Revenue (CBR) is engaged in a comprehensive plan to re-structure and modernize the entire tax administration and customs operations, and has taken steps in the recent past to increase the number of taxpayers and broaden tax bases.
As a continuing effort to improve the tax system in Pakistan and complementing the ongoing work of the Tax Administration Reform Project, the International Studies program was contracted by the World Bank and the FBR to conduct the Pakistan Tax Policy Review Project. As part of this project, the ISP is producing a series of policy papers to further analyze and evaluate the tax system in Pakistan, as well as to extract lessons from the international experience in tax reform in order to obtain specific policy recommendation. This project also includes three study tours which include trips to Turkey, South Africa, and Egypt and on-going capacity building through in-country seminars and a visiting scholar program to the Andrew Young School in Atlanta.
Pakistan Tax Policy (PAT) Report Series co nsists of the following 9 policy papers:
• #1: Short Term Tax Policy Options for the 2007-2008 Budget
• #2 Tax Policy In Pakistan : An Assessment Of Major Taxes And Options For Reform
• #4 Subnational Tax Reform Options: Northwestern Frontier Provinces
• #5 Subnational Tax Reform Options: Punjab
• #6: Enterprises – Taxation & Investment Climate
• #7 Incidence Of Taxes In Pakistan : Primer And Preliminary Estimates
Lessons from International Tax Reform: Country-Case Studies and Study Tours
The International Studies Program and the World Bank designed a specific study tour to Turkey for Federal Board of Revenue Officials in October 2007.
Future planned trips include South Africa and Egypt .
Tax Policy Reform Capacity Building
The International Studies Program has engaged the FBR in short-term capacity building activities in a learning-by-doing fashion for five of the nine policy papers. These trainings and presentations started in December 2007 and are continuing into January and February 2008. This capacity building initiative is integrated within the overall framework of institutional reform and the capacity development efforts for tax reform in Pakistan.
In addition to in-country capacity building, the ISP has been hosting visiting scholars from the FBR in Atlanta. While in Atlanta these FBR visiting scholars have been directly with Andrew Young School experts on the Tax Policy Review papers. Current and past scholars include Robina Ahmed, Umar Wahid, and Mir Ahmad Khan.
| Project: | Pakistan Tax Policy Review Project |
| Date: | January 2007 – December 2008 |
| Team Leader: | Prof. Jorge Martinez-Vazquez |
| Project Team: | Prof. Jorge Martinez-Vazquez, Prof. James Alm, Prof. Roy Bahl, Prof. Geerten Michielse, Prof. Mark Rider, Prof. Wayne Thirsk |
| Location: | Islamabad, Pakistan |
| Counterpart: | Federal Board of Revenue http://www.fbr.gov.pk/default.asp |
| Contractor: | The World Bank |
