Impact of Tax Reforms on Manufacturing Industry of Pakistan

Abstract

This study has been aimed to explore the impact of tax refonns on manufacturing industry of Pakistan. This study has considered planned behavior towards tax, fairness perception, willingness to pay tax, and tax knowledge as independent variables. Whereas, tax morale and tax compliance has been considered as the dependent variables. However, manufacturing industry of Pakistan has been the sector chosen for testing the relationship between variables mentioned above. Structured questionnaire based on 5 Likert scale has been the research instrument used within this study for collection of data from respondents (taxpayers associated with manufacturing industry of Pakistan). A sample size of 200 respondents to represent the entire population has been finalized. Questionnaires were distributed amongst taxpayers associated with manufacturing industry of Pakistan to gather the data. Collected data has then been analyzed through statistical instruments such as correlation and regression by using SPSS Software. Based on the findings, it has been concluded that tax reforms (planned behavior towards tax, fairness perception, willingness to pay tax, and tax knowledge) have significant impact on tax morale and tax compliance in manufacturing industry of Pakistan