Financing for Development Impact

Muhammad Sarim Imran#Fin4DevMOOCFinancing for Development Impact

Development & Taxation in Pakistan

Domestic Resource Mobilization for Development

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Problem - Ease of Tax Administration in Pakistan.

.The national economic crisis has refocused public and political attention on the importance of defeating illicit tax abuse and improving bank transparency. It has ushered in a long-overdue public and political intolerance of regimes that flout tax laws and standards and deprive countries of their rightful earnings and assets. Properly and transparently organized tax systems are now accepted as engines of development, not constraints.

Obstacles in Tax in PakistanEase of Tax AdministrationWeak Capacity for ImplementationNon effective Tax policyNon Efficient Tax Collection

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Importance of Tax collection in DevelopmentResource MobilizationReduction in Inequalities of IncomeSocial WelfareRegional DevelopmentControl of Inflation

SolutionsStrong Implementation PolicyProductive Tax AdministrationEffective & Efficient Tax policyDeveloped Tax Structure

Conclusion

Both direct and indirect taxes are essential to bring adequate revenue to the state for meeting the increasing public expenditure. Both taxes are essential to promote economic growth, fill employment and economic stability. Direct and indirect taxes should side by side & balance each other. However in developing countries, direct taxation has limited scope and hence indirect taxation plays a more significant role. A well oriented system of taxation requires combination of direct & indirect taxes in different proportions.