International Journal of Accounting and Financial Reporting

ISSN 2162-3082
2014, Vol. 4, No. 2

Causes of Tax Evasion in Pakistan: A case study on southern Punjab
Waseem Ahmad Khan (Corresponding author)
Lecturer, Department of Management Sciences,
The Islamia University of Bahawalpur, Pakistan
E-mail: waseemkhan_hcbf@yahoo.com, Tel: +92-333-3133540

Prince Fawad Ahmad
Student, Department of Management Sciences,
The Islamia University of Bahawalpur, Pakistan

Accepted: October 15, 2014
DOI:10.5296/ ijafr.v4i2.6484

URL: http://dx.doi.org/10.5296/ ijafr.v4i2.6484

Abstract
Introduction: Tax evasion is main problem in Pakistan due to which Pakistan remains under a lot of stress. Tax evasion results in less revenue. Many causes have been discussed which play major role in tax evasion in Pakistan. It is a primary research.
Literature review: Many authors have discussed impacts of tax evasion in different sectors of economy. Previously tax evasion cause major trouble in Tanzania & Greece.
Methodology: A questioner has been filled by targeted population of 100 Professionals &
Business students of Department of Management Sciences Islamia University of Bahawalpur.
Questioner was consisted of 5 major parts i.e. Tax System, High rate, Go with the flow,
Corrupt Govt. & Progressive taxation.
Findings: Most of the population agrees that these causes play a vital role in the tax evasion in the Pakistan.
Conclusion: Tax evasion is main problem of Pakistan which needs to be eliminating by following the recommendations that tax system must base on ground realities, tax rates should be low. There should be proper check & balance of government, tax awareness in public should arise by different channels.
Keywords: Pakistan, Tax Evasion, Progressive Taxation, Corrupt govt., Tax system.
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