• Overall Progressivity
• Personal Income Tax
• Wealth Taxes
• Value Added Tax/Sales Tax
• Trade taxes
• Presumptive/Turnover Tax
• Corporate Income Tax

• Tax Revenues
• Revenues from Extractive Industries
• Tax Payers

• Organization
• Administration
• Resources
• Oversight

• Agriculture
• Education
• Healthcare

• Tax System Transparency
• Information Availability on Companies
• Audit
• Budget Documentation
• Citizens’ Engagement

• Governance
• Transparency

The main challenge Pakistan is facing is a narrow tax base. It needs to be broadened through documentation of the economy and an effective information management system as well as a robust enforcement infrastructure so that the tax evaders are made accountable to pay their due taxes. It is also crucial to lower the burden of indirect taxation on the poor.

• Overall Progressivity
  8
• Personal Income Tax
  6
• Wealth Taxes
  0
• Value Added Tax/Sales Tax
  6
• Trade taxes
  5
• Presumptive/Turnover Tax
  6
• Corporate Income Tax

Pakistan obtained a relatively high score for revenue sufficiency because it has improved revenue collection in various ways during the last three years. However, Pakistan's total tax revenues are still below 10% of GDP and are amongst the lowest in the world.

• Tax Revenues
  5
• Revenues from Extractive Industries
  8
• Tax Payers
  8

The tax authority has consistently improved over the years, however, it has failed to adopt a long term approach to ensure a sustainable stream of tax revenues and to bring more tax payers in the tax net. Although heavy investments have been made into digitalizing the tax system, the newly created technological platforms are not fully utilized.

• Organization
  8
• Administration
  10
• Resources
  7
• Oversight
  10

Pakistan is not investing enough into its education and healthcare system, according to the international standards. Although the resources allocated to the basic services have been increasing in the past years, further efforts need to be made to meet the desired levels.

• Agriculture
  10
• Education
  3
• Healthcare
  3

There is a very limited role of the civil society to participate in the formulation of the revenue policies as the government is not supportive of including citizens in the decision making process. Significant improvements need to be made in terms of information availability. The financial affairs of state owned enterprises in particular lack transparency.

• Tax System Transparency
  7
• Information Availability on Companies
  0
• Audit
  5
• Budget Documentation
  6
• Citizens’ Engagement
  5

Pakistan has an ambiguous and unfair constitutional structure with prevailing tax exemptions and preferential treatment given to specific sectors and elites of the society. The influential class of society create a legal space for exempting their income or set the tax rates of their own choices as a result of bilateral negotiations with the government, which ultimately burdens the poor. Fortunately, majority of such exemptions is to be withdrawn by 2016, which will have a positive impact on the tax system in Pakistan.

• Governance
  4
• Transparency
  8