Impact of Fiscal Decentralization on Services Tax Collection in Khyber Pakhtunkhwa

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Muhammad Atif
Dr. Naila Nazir

Abstract

This study aimed to evaluate the post-decentralization difficulties, the Khyber Pakhtunkhwa Revenue Authority (KPRA) faced in collecting services tax in the province of Khyber Pakhtunkhwa at its actual potential. The study also sought to pinpoint challenges that the new tax authority was having and needed assistance from both the provincial and federal governments to fix. The foremost issues were analyzed via conducting Focus Group Discussions (FGDs) with KPRA Officers Tax Experts and consultants. Following Krueger & Casey (2000) and note-based technique, the result of the study showed that multiple issues, specifically, un-documentation, tax exemptions in FATA/PATA, and lack of tax experts & strategic plan leading to collection of services tax lower than actual potential. All such issues were caused by incapacity and lack of coordination by the province with federal authorities after decentralization. Finally, it is suggested that collaboration and sustained assurance of all stakeholders, including the federal and provincial governments are required to collect services tax at optimum level.

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How to Cite
[1]
Atif, M. and Nazir, N. 2023. Impact of Fiscal Decentralization on Services Tax Collection in Khyber Pakhtunkhwa. Journal of Policy Research. 9, 2 (Sep. 2023), 701–708. DOI:https://doi.org/10.5281/zenodo.8331526.