Abstract
Revenue generation of any country largely depends upon its tax collection capability. Taxation is the main fiscal instrument for the collection of the revenue for both developing and developed economies. Through taxation, income diverts from unproductive expenditures to socio-economic expenditures and investments by acceleration. However, like other developing countries, Pakistan has always been confronting fiscal imbalance and unsatisfactory tax situation. The objective of the study is to explore the institutional determinants of tax buoyancy in Pakistan for the period of 1996 to 2016. The study employs the autoregressive distributed lag (ARDL) technique for aggregated and disaggregated analysis of different types of taxes. The study finds out that buoyancies of different taxes have blended results with different institutional variables.
Keyword(s)
Institutional Determinants, Tax Buoyancy, Case study, Pakistan