The determinants of tax morale in Pakistan

The paper analyzes the causes of tax evasion in Pakistan, a country that has been fighting for a low tax effort for the last decade. We use the novel data of individual taxpayers collected in 2014 by the Board of Finance of Pakistan to compute the binary multiplier model for the app. Our results are generally consistent with the findings of the recent literature on good tax behavior in other countries. Overall, the lower-income working-age groups showed positive attitudes toward taxation. The educated respondents showed higher taxes than the illiterate, but only for those who received the lowest or highest education. Tax rates are very high in large industrial centers for people who serve as government chairs. Women show higher taxes on average than men, however, their behaviors tend to get worse depending on the age when older women have lower tax behavior than older men. Our finding of gender suggests a potential benefit from increased levels of female participation in women. In general, addressing current tax management failures and addressing existing inequalities arising from administrative weaknesses can be very helpful in developing voluntary compliance.

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