Impact of Semi-Autonomous Revenue Authority on Tax Revenue and Buoyancy: Evidence from Pakistan

Abstract

This paper efforts to investigate the effect of semi-autonomous revenue authority (SARA) on the tax revenue and tax buoyancy of Pakistan. The current study uses the annual time series data spanning the period between 1972-2015 was used. After ensuring the stationary property of the data series and long-run relationship between variables, the regression analysis is employed to test the model. The results reveal that gross domestic product substantially increases the tax revenue collection. Moreover, the impact of SARA reforms is insignificant but positive in Pakistan. However, the cumulative effect of SARA reforms and real income becomes negative and insignificant on the tax revenue productivity. So study proposes some useful implication for the policymakers about the improvement of tax revenue productivity.