Abstract:
Tax plays an important role in a development of the country as its major source of government revenue. Pakistan is one of the developing countries with the potential to make its economy grow and sustainable. This report focusses on the comparison of Pakistan tax system with developed country like Denmark tax system. In order to know despite of several taxes being imposed on Pakistan citizen why the tax revenue is low and the countries like Denmark where there's heavy rate of taxes imposed how people still pay them happily without feeling burdened. This study measures the way by which Pakistan tax system can be improved by making it more transparent and boarded so all citizen could pay their taxes equally and fairly. As this will benefit not only Pakistan but all the developing countries which are in the run to make their country developed. To compare these two countries tax system this, report, examine the corporate tax rate of both countries and consumer purchasing power in regards to taxation. The main purpose of this study is to highlight all the loopholes because of which the tax collection of Pakistan is low and recommend the way by which these problems can be overcome.
