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Uses Of Revenue
Defence, enforcement of law and public order,
protection of property, economic infrastructure,
roads, welfare, education systems, health care
systems, transportation, energy, etc and the
operation of government itself.
Sources Of Revenue
1. Tax Revenue
2. Non-Tax Revenue
Tax Revenue
• Direct Taxes
b. Indirect Taxes
Non-Tax Revenue
There are various other sources by
which a government collect revenue.
Non-Tax revenue is derived from
various sources.
• Fines, penalties and forfeitures
• Sale of goods and services
• Rent of government lands and property
• Fees and charges
• Licenses
• Income on investments, interest on
loans, dividend etc.
Pakistan Federal Government’s
Revenue of Year 2006-2007
(Rs. In millions)
• Income tax.
• Sales tax.
• Excise tax.
• Property tax.
• Water tax etc.
Classification of Taxes
3. Progressive Taxes
4. Regressive Taxes
5. Proportional Taxes
Progressive Taxes
Tax
Rate (C)
(b)
Income
• Equitable
• Economical
• Certain
• Elastic
• Civic Consciousness
• Reduction of Inequalities
Disadvantages of Direct Taxes
• Inconvenient
• Unpopular
• Evasion
• Arbitrary
Advantages of Indirect Taxes
• Convenient
• No Evasion
• Equitable
• Beneficial Social Effects
• Wide Coverage
• Productive
Disadvantages of Indirect Taxes
• No Civic Consciousness
• Uneconomical
• Inflationary
• Evasion
• Uncertain
Tax Rates
• Revenue
The main purpose is revenue taxes raise money to spend on
roads, schools and hospitals, and on more indirect
government functions like good regulation or justice systems
• Redistribution
this means transferring wealth from the richer sections of
society to poorer sections
• Repricing
Taxes are levied to address externalities: tobacco is taxed,
for example, to discourage smoking.
Effects of Taxation on:
• Production
• Income Distribution
• Consumption
Types of Taxes in Pakistan
•Income Tax
•Sales Tax
•Federal Excise Duty
•Custom Duty
•Workers Welfare Tax
•Property Tax
•Wealth Tax
•Motor vehicle Tax
•Foreign Travel Tax
•Stamp Duties
CBR Tax Collection 2006-2007
CBR Tax Collection 2006-2007
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