Assessment of Major GST Expenditures in Pakistan

Pakistan is a lower middle-income country with a very low tax-to-GDP ratio, which makes it difficult for the government to balance the budget. An important reason for the low tax-to-GDP ratio is the loss of revenue due to tax expenditures. In this article, the author discusses the most important GST expenditures and concludes that they are purely politically motivated and, thus, ineffective and inefficient.