Investigator: Anjum Nasim (IDEAS)
This project is divided into two parts. Part A begins by providing a brief outline of the state of public finances in Pakistan and a review of the arguments for and against GST. This is followed by a historical overview of the antecedents of GST, the reasons for the resistance to GST by businesses in Pakistan over the years and possible solutions to some of these concerns. In Part B, we evaluate the current performance of GST and the revenue potential of a full VAT with minimal exemptions, the current mode of taxation on services and interprovincial disagreements on the mode of collection and revenue sharing, a review of literature on implementation of VAT with split jurisdiction and recommendations for Pakistan.