Regional Federal Tax Performance: A Socio-economic Perspective
Author: Sana Zafar


The research aim of this study is to identify whether the socio-economic determinants affect federal tax performance or not and to evaluate federal tax revenue performance at a regional level. The qualitative and quantitative econometric method is applied in the study for these purposes. We use panel data and Stochastic Frontier Analysis to examine the efficiency of regions. The data for this study has been taken for the span of 2008-09,2010-11,2014-15 and 2019-20 on fifteen RTO’S. The study examines the tax performance of RTO from a socioeconomic perspective. Education level proxy, Employment status proxy, Income per capita, and Social welfare services proxy show positive significant results. The main findings of this study are:1) Tax revenue performance is determined by both socioeconomic factors and the efficiency of FBR staff in the tax collection process. 2) Tax revenue performance is affected by the existence of non-tax-sourced revenues.3) There exist a regional disparity among regions and the tax revenues are mismatched between some regions. Overall, it is deduced that tax revenue performance is affected by both the socio-economic factors and the efficiency of FBR in tax collection.

Meta Data

JEL Classification: C33, H21
Keywords : Panel Data, Stochastic Frontier Analysis, Tax performance
Supervisor: Mahmood Khalid

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