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CDPR Research 

Taxation Crisis in Pakistan

Indirect taxation is generally considered to be regressive. In this policy brief, however, IGC researchers emphasize the need for indirect taxation due to the shortage of income tax payers in the country (less than 1 percent of the population of 180 million). They argue that the problem does not lie in high tax burden on those who pay taxes, but in the lack of fairness i.e. few individuals pay most of the tax. This occurs when rules and regulations allow individuals to escape the tax net legally as well as illegally through poor enforcement. The brief's findings demonstrate that it is not the “burdened middle class”, but in fact the corporate sector of Pakistan that pays over 62.4 percent of all income tax in Pakistan.

Read the complete Policy Brief here.

To read other economic views and policy briefs written by CDPR Fellows and Affiliates, visit CDPR website at

About the Consortium for Development Policy Research (CDPR)

CDPR is an association of independent researchers/policy advisors based in Pakistan. It aims to consolidate resources and promote cutting-edge research to stimulate evidence-based debate on key policy issues. Its participating organizations include the Center for Economic Research Pakistan (CERP) and the Institute of Development and Economic Alternatives (IDEAS). CDPR receives financial support from the IGC, which is based at the London School of Economics and Political Science in partnership with the University of Oxford and is funded by the UK Department for International Development (DFID). The Consortium’s policy advocacy is carried out via engagement with policymakers, media and other stakeholders using multiple avenues such as workshops, dialogues, seminars, web based materials and regularly published high-quality policy briefs. CDPR is also building capacity as a reservoir of research materials (reports, papers, books, data) on key policy areas relevant to Pakistan available on the website.
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