In Pakistan the tax gap has been estimated to be our percent of GDP. The huge gap of tax in Pakistan is due to the fact that the size of informal economy is larger than formal economy. Actually the tax net is extremely narrow with 1.26 million tax return filers for the tax year 2017. It views that the taxes rates have created problem to live through the fear of informal taxes. The tax administrators don’t have human resources to catch and penalize every tax evader. Thus, in Pakistan, tax compliance costs are higher as compared with regional countries. 


Kech, April 25.