Author ORCID Identifier

Roy Bahl:

Sally Wallace:

Document Type

Book Chapter

Publication Date



The four provinces in Pakistan rely on a number of major and minor taxes. Motor Vehicles Taxes (MV) are the most important source of revenue in the category. Other taxes, such as tax on professions, trades and callings and sales tax on services, have remained underutilized and sources of revenue. After the 18th Constitutional Amendment in 2010, there is renewed interest in levying sales tax on services. Sindh has already established the Sindh Revenue Authority and Punjab is slated to follow suit. In this chapter, a discussion of these taxes is presented as an analysis of the current tax structures and issues in tax policy and administration. The chapter closes with a discussion of reform of provincial taxes with an emphasis on clarifying incentives for provincial revenue mobilization.


Published in The Role of Taxation in Pakistan’s Revival, edited by Jorge Martinez-Vazquez and Musharraf Rasool Cyan. Oxford University Press: Karachi, 2015.

(c) Oxford University Press.

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