New IGC Pakistan film on tax collectors

New IGC Pakistan film says incentives to tax collectors can boost their performance

Salary incentives for tax collectors could increase the amount of taxes raised, according to our new short video, available for viewing here.

This video shows the results of an IGC-funded “pay for performance” scheme that was tested in Punjab with the Excise & Taxation Department by leading economists from Harvard University and MIT. The economists found that incentivising urban property tax collectors increased the amount of tax collected by 30-40%. Public satisfaction in the work of tax collectors wasn’t affected, and the increased revenue more than paid for the reward scheme.

View the short video here.

This research was carried out by the economists working with the Government of Punjab, who tested three different “pay for performance” schemes and monitored the results for two years. The researchers are Dr. Asim Ijaz Khwaja (Harvard University), Dr. Benjamin Olken (Massachusetts Institute of Technology) and Dr. Adnan Qadir Khan (IGC). The research project is being implemented by the Center for Economic Research in Pakistan (CERP).

An academic research paper showing the results of this project is available on the IGC website here.

About IGC Pakistan

The International Growth Centre (IGC) aims to promote sustainable growth in developing countries by providing demand-led policy advice based on frontier research. The IGC directs a global network of world-leading researchers and in-country teams in Africa and South Asia and works closely with governments to generate high quality research and policy advice on key growth challenges. The IGC is directed by the London School of Economics and University of Oxford, and is funded by the UK Department for International Development (DFID). IGC's Pakistan programme is guided by Dr. Ijaz Nabi (Country Director), Dr. Naved Hamid (Resident Director), Dr. Ali Cheema (Lead Academic) and Dr. Asim Ijaz Khwaja (Lead Academic).

New IGC Pakistan film says incentives to tax collectors can boost their performance

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About IGC Pakistan