It is desirable to have a larger proportion of direct taxes in the taxation structure. Explain why? Also explain, why in a developing country like Pakistan, efforts to raise the share of direct taxes have not met with success.

Explain · 20 marks · 30 min

About 1200 words. The examiner marks against these:

• ☐ Pakistan link
• ☐ Causes

Debate: Should Pakistan shift its tax burden from indirect to direct taxes?