Sales tax administrative functions in Pakistan: Reflections on the problems

Abstract

In this article, the author makes an assessment of the sales tax administration in Pakistan with respect to certain areas including registration, filing, payment, invoicing, refunding and auditing, and suggests policy recommendations for making sales tax system practically effective and efficient. The paper also examines the administrative disputes that have emerged due to the splitting of the sales tax base between the federal and provincial governments. Finally, empirical analysis is carried out to examine the revenue performance of the sales tax administration.