Beyond Tax Collection: Towards a Comprehensive Tax Policy for Pakistan

This analysis by Zafar ul Hasan Almas, former Joint Chief Economist and Senior Research Associate, IPS, and Dr. Asim Ehsan, Senior Research Officer, IPS, examines Pakistan’s need for a comprehensive and transparent tax policy framework. The policy insight explores weaknesses in current tax practices, including reliance on indirect and regressive levies, administrative rule-making, and the exclusion of certain revenues from the divisible pool. It also assesses taxation against principles of equity, certainty, simplicity, and efficiency. Importantly, the commentary proposes institutional reforms, including a National Tax Policy, impact assessments, stronger parliamentary oversight, broader direct-tax bases, and separation of tax policy from administration.