The Predictability and the Flexibility of Tax Revenues in Pakistan

Evolving an efficient tax system is a major concern in any developing country, because the pace and viability of development programmes depends heavily on the tax system. An efficient tax system should satisfy tests on many counts. This paper analyses two aspects of Pakistan’s tax structure, namely, its predictability and its flexibility. In Section I, the efficacy of the revenue estimating procedures in Pakistan is analysed. Section II contains a discussion on the flexibility of the central tax revenues with respect to changes in the national output.