IMPACT OF TAXATION ON POVERTY IN PAKISTAN

The objectives of this research paper was to measure the impact of taxation on poverty in Pakistan, keeping in view other variables like inflation, GDP, population and per capita income. Correlation and regression techniques were applied for analysis of time series data for the period from 1998 to 2018. The results revealed the positive correlation between taxation and poverty. Multiple regression analysis showed the negative impact of Taxation, Inflation and GDP on poverty, whereas a positive impact of Population and Per Capita Income, on poverty. For taxation point of view, this study recommends that the government should review the taxation system in the contest of poverty level, unemployment, savings and investment rates in Pakistan.