Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
No Result
View All Result
Home Business

Urban property tax collection up by 30% to 40%: Pak tax revenue just 9% of GDP as 15% in developing, 40% in developed countries

byCustoms Today Report
21/01/2015
in Business
Share on FacebookShare on Twitter

LAHORE: A new short video by International Growth Centre (IGC) under the title of “Taxing Pakistan: How to motivate civil servants”, shows results of a ‘pay for performance’ scheme and revealed that salary incentives for tax collectors in the country could significantly increase the amount of taxes.

According to a new video released by International Growth Centre (IGC), the results of a ‘pay for performance’ scheme was tested in Punjab with Excise and Taxation Department by leading economists from Harvard University and Massachusetts Institute of Technology (MIT).

You might also like

Govt generates Rs144b through PSX Sukuk auction

20/08/2026

Pakistan’s power sector circular debt rises to Rs1.67 trillion in FY26

19/08/2026

The IGC-funded economists found incentivising urban property tax collectors increased the amount of tax collected by 30-40 percent. Public satisfaction in the work of tax collectors was not affected and the increased revenue more than paid for the reward scheme.

Tax collection in Pakistan is very low, even compared to other developing countries. Pakistan’s tax revenue is just 9 percent of its Gross Domestic Product, compared to a 15 percent average across developing countries and 40 percent across developed countries. This has led to a shortage of funding for public services such as education, healthcare and sanitation.

In Punjab, Excise and Taxation Department depends on tax collectors who spend much of their time in the field directly determining what needs to be taxed.

Without incentives these tax collectors have suffered from low motivation and productivity. This has undermined the government’s tax revenue.

Dr Adnan Qadir Khan research and policy Director at IGC said, “When people do not get enough services they do not want to pay revenues to the state, and the state cannot provide those services because it does not have enough revenue”. One of the researchers Dr Benjamin Olken Professor of Economics at MIT said, “Overall the pay for performance scheme worked.

Related Stories

Govt generates Rs144b through PSX Sukuk auction

byCT Report
20/08/2026

ISLAMABAD: The Ministry of Finance has raised Rs. 144.153 billion through the Government of Pakistan Hybrid Sukuk (GHS) auction conducted...

Pakistan’s power sector circular debt rises to Rs1.67 trillion in FY26

byCT Report
19/08/2026

ISLAMABAD: Pakistan’s power sector circular debt increased by Rs61 billion during fiscal year 2025-26, reaching Rs1.675 trillion by June 30,...

SECP clears 13th public offering of 2026 as Naya Nazimabad REIT heads to PSX

byCT Report
18/08/2026

KARACHI: Pakistan’s primary equity market extended its most active stretch in years Tuesday, as the Securities and Exchange Commission of...

Sales tax chaos: Hybrid vehicle makers halt production

byCT Report
17/08/2026

ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded an immediate rollback of the sales tax...

Next Post

Mercedes-Benz C-Class, BMW 3-Series, Audi A4, Lexus IS: Mercedes wins 2014 car of the year award

  • Terms and Conditions
  • Disclaimer

© 2011 Customs Today -World's first newspaper on customs. Customs Today.

No Result
View All Result
  • Transfers and Postings
  • Latest News
  • Karachi
  • Islamabad
  • Lahore
  • National
  • Chambers & Associations
  • Business
  • About Us

© 2011 Customs Today -World's first newspaper on customs. Customs Today.