Tax revenue as effected by economic factors in Pakistan

Abstract

The purpose of this project is to examine the impact of Gross domestic product (GDP) growth rate, foreign direct investment (FDI), Exports and Adjusted net national income (ANNI) on tax revenue in Pakistan. For this purpose time series date was collected for period of 1974 till2018, regression analysis is performed on sample size of 42 observation, key findings are explained. The outcome of the this project indicates that there is positive and significant relation between foreign direct investment (FDI), Exports, Adjusted net national income (ANNI) and tax whereas, significant but negative relation. with Gross domestic product (GDP) growth rate due to multiplier effect. The findings of the project would be helpful for the policy makers of Pakistan that what factors are to be considered to strengthen the economy of country and to what extent. This study will be a policy note over, on- going tax reform in Pakistan and will be helpful for researcher in conceptualizing the tax revenue model for them in future. The findings of the study can be more meaningful and helpful for tax policy makers of Pakistan with addition of more variables in the model