tax culture in pakistan essay

• Current Affairs
• Pak Affairs
• Islamic Study
• English Essays
• Privacy Policy

Promotion of tax culture in Pakistan: Perspective, prospects and challenges

Outline: Introduction: 1) Definition of tax culture

2) Tax culture around the world

3) Tax culture in Pakistan

4) Reasons due to which people don’t pay taxes

i) Illiteracy

ii) Lack of awareness about tax system

iii) Complex tax system and codes

iv) Harassment of the tax-payers

v) Corruption in the administration

vi) Lack of punishment for non-payers and corrupt officials

vii) Badly carried out amnesty scheme

viii) Mistrust among common people

ix) Luxury living standards of the elite

x) Lack of tax incentives

5) Bad effects of non-payment of taxes

i) Economic disparity in the country

ii) Non-availability of public educational institutes, hospitals etc.

iii) Increase of class gap

iv) More taxes on the poor

v) Foreign loans

vi) Lack of security and safety

6) Methods to improve tax collection

i) Educating the nation

ii) Simplification of the tax system and codes

iii) Friendly environment for the tax-payers

iv) Giving tax incentives such as amnesty scheme but with proper homework

v) Punishing the culprits

vi) Rulers leading by example

vii) Reviving trust of the common people on the government

viii) Awareness campaigns through print and electronic media.

7) Good effect of tax-payment

i) Economic prosperity

ii) Construction of schools and hospital etc

iii) Reduction in class gap

iv) Less indirect taxes

v) Elimination of debt financing

vi) Improvement in security apparatus

8) Conclusion

Birger Nerre defines Tax Culture as the entirety of all formal and informal institutions related to the tax system and their dependence and ties with each other and with the public, embedded in the culture of a country. Thus we can define the tax culture is the way that tax collecting departments communicate with each other and with the public.

In the developed world, political stability and democratic maturity have brought a tax culture that provides the basis of economic prosperity. Unfortunately, this has not been the case with our country. A vast majority of the people don’t pay taxes resulting in the poor services provided to the public by the successive governments.

The lack of development of this culture in our country is not without reason. If we compare our circumstances with that of the developed countries, we easily know that there are huge differences in our and in their situation. The difference of situation due to some reasons has not allowed our tax culture to flourish. The first reason of this the majority illiteracy gap between us and them. In developing countries, more than 90 percent are well-educated whereas in our country only 50 percent are educated including those who can only write their names. In such a dismal situation, it is hard to expect some positive results.

The other worrying sign is the lack of tax payment by the educated class. Most of them do not pay taxes incumbent upon them. This reason for this is the lack of awareness among them and the complex tax codes, which are too difficult to grasp. Common people don’t have the awareness about the payment of taxes and that how taxes can prove helpful for their lives. To add with this is the complete system of tax-payment and hefty procedures which are to carry out while paying tax.

The other reason is the harassment of the common people at the hands of the administration. Most of the staff members don’t have the proper training of how to deal with customers in a polite manner and black sheep in the administration instead of motivating them to pay tax, lure them into bribery for personal benefits. This deteriorates the already bad image of Federal Board of Revenue and other institutions dealing with tax collection and further de-motivates the public from paying taxes.

These malpractices are further encouraged when corrupt officials and non-payers do not get any sort of punishment. Most of the corrupt mafia roam around freely in the country with no accountability and punishment. This allows the corrupt people to bribe these officials to enjoy the perks of their earning without taking care for their obligation of tax-payment.

Successive governments have used unconventional methods instead of Instead of resorting to strict measurements such as punishment. One such example is the tax amnesty scheme announced by the governments to motivate non-payers to pay their taxes. This provides them with some sort of flexibility or concession in their payment but has not worked well so far. Due to the lack of proper planning and political will, these schemes dilutes after some time.

One of the main reasons is the mistrust of the government among the public. Common people when seeing government officials living luxurious lives in the country and abroad and the perks and privileges they enjoy become hesitant to pay taxes. The majority thinks that these taxes will be wasted on foreign tours or private functions of the officials. In such a mental situation, it is a bit too much to expect from them that they will pay taxes.

The lack of incentives is another major hurdle in the development of tax culture in our country. The government needs to give some incentives to the people to motivate them towards tax-payment. The tax amnesty scheme by the present government is a laudable scheme but this scheme should not dilute after the change of government. Follow-up measures in this regard will be extremely helpful.

When rich people don’t fulfill their obligation of paying taxes, it results in serious consequences for the economy of a country. This is evident in the low growth of our GDP and economic crunch faced by our country. Now if we take a look at the developed we see that their Tax to GDP ratio is quite high which reduces the budget deficit and as a result, they are living lives with much more facilities than we.

This economic disparity results in the non-availability of education institutes, hospitals and other basic needs of life. Rich people get these facilities from abroad or from areas where they are available at high prices but poor people don’t have the money to pay for it and as a result, they remain deprived. This has increased class gap at a very high pace and is kept on increasing.

Another major negative effect that society has to face is too many indirect taxes from the government. Direct taxes are paid on the income and so thus only rich have to pay whereas indirect taxes target poor the most. Commodities of daily life become hard to buy when poor has an as low salary as less than 100$ per month. When taxes are not paid, Government has to take some steps in order to deal with the situation. The easiest way is to take loans from foreign donor agencies like IMF and World Bank etc. The whole economic system is gripped under a vicious cycle in which debts keep on increasing and the country becomes poorer and poorer.

The other major indicator and bad effect of this are the deterioration of law and order situation in the country. This law and order situation is not only a problem in itself but has also many other many tentacles which need to be considered. Bad law and order situation results in the reduction of foreign direct investment and in the number of foreign tourists. Thus the country not only loses some valuable investment but also results in a bad image of the country abroad. This law and order situation is directly related to the economic prosperity and financial resources of a country.

In order to counter these effects, government and us, as a nation need to follow some steps. The very first to be taken is to educate the coming youth. This will raise a sense of duty among them to pay their taxes. This doesn’t mean that we provide only conventional education without any ethics and moralities. They should be motivated to fulfill their obligations while living in the state. The code tax should be simple and understandable for the common public and there should be proper check and balance on the Federal Board of Revenue administration so that they cannot harass or behave negatively with tax-payers.

The government should announce tax amnesty schemes for the non-payers to motivate them towards payment of taxes. Apart from this, the government should also give strict punishment to those who do not obey the law of the land. Those who do not pay taxes constantly should be made an example for others. This will deter the financial crimes and corruption in this regard.

Steps should be taken to revive the trust of people in the system. The two major steps in this regard would be the example of rulers. If rulers do not pay taxes then it is not justified to expect that common people will pay taxes. The government should also raise awareness among the society by various print and electronic media campaigns. Social media can also prove to be instrumental in such awareness campaigns.

Proper payment of taxes will not only stabilize the economic condition of our country but will also improve the living standard of people. The class gap will reduce significantly amid the improving financial conditions of poor and literacy rate will improve drastically due to a high number and quality of public education institutes. More public hospitals will be built, which means that public will have access to advanced and less-expensive medical facilities.

The financial sector will improve significantly, which will result in less or no debt financing on part of the government. The money which the government pays in exchange for the loans they take from donors will be diverted towards poor people. Another major output will be the reduction in indirect taxes and increase in direct taxes. The reduction of indirect taxes means that daily life commodities will be less expensive to buy for the poor whereas direct taxes will further help the government in expanding its financial pool.

The improvement in financial resources means the improvement in security and safety of the citizens both from internal and external threats. This improved security situation will also encourage foreign investors to invest in Pakistan, which will drastically change the lifestyle of the poor, bringing a positive change to their lives through employment opportunities.

If we compare our country with the countries of the world and of the region, we will come to know that even regional countries have high tax to GDP ratio than us, forget about the developed world. In Pakistan only 0.3 percent people pay taxes which make total GDP ratio not more than 10. Now it is up to us whether we want to improve our lives or want to depend on foreign loans and dictations.

RELATED ARTICLES MORE FROM AUTHOR

Exploring energy crisis solutions, justice delayed is justice denied, the concept of islamic democracy.

Good article… May I share an article about the Face Changing Sichuan Opera in https://stenote.blogspot.com/2017/11/the-face-changing-of-sichuan-opera.html Watch also in youtube https://youtu.be/JTdn8XaPp-I

you don't even know the fact that essays are written in third person. no wonder who allowed you to write on a platform.

Please give your suggestions for improvements instead of criticising out-rightly.

LEAVE A REPLY Cancel reply

Save my name, email, and website in this browser for the next time I comment.

Recent Posts

Role of literacy in the economic development of a country, national security threats to pakistan, the place of urdu in pakistan and supreme court ruling making it an official..., ill-effects of energy crisis, need for serious planning in technical education.

Today's Paper | March 27, 2024

Tax culture.

“Be wary of strong drink. It can make you shoot at tax collectors … and miss.” —Robert A. Heinlein

THERE is a simple equation for state taxation: tax the rich and spend on the welfare of all and sundry. In Pakistan, there is a strong probability that one might be running for office and not even be registered with the Federal Board of Revenue, or only paying a few thousand coins in symbolic taxes.

More than 70 taxes administered by 35 agencies have made the system a labyrinth, with umpteen forms of taxation and the crisscrossing of several jurisdictions leaving the masses behind. It is the man on the street who ultimately has to bear the brunt through indirect taxation. And resultantly, there is a tendency to curse the tax collector along with the social contract itself. In big cities, it is clear that even business communities have very little confidence in our system of taxation.

Just as democracy has evolved, taxation too has undergone a transformation. But it is a continuous trial-and-error process, especially at the federal level, and it has pushed the whole system into an unfortunate downward slide in terms of tax-to-GDP ratio, which in our case ranks among the lowest when compared to other developing nations.

The world over, revenue collection has never been a pleasant task.

When challenged, the current taxation model (that of manually ascertaining information without proper authentication) does not even pass the test of first appeal. This model is in dire need of an overhaul through the provision of an authentic database.

Almost every public- and private-sector entity is managed to some extent with the use of information communications technology (ICT). Not just assessments, even a high-grade tax policy can be evolved, in which at least all public-sector entities are assimilated through a single national data server. There have been exceptions; for instance, it is encouraging to see that, recently, whosoever (even non-filers) purchased a new car or immovable property in certain cities received a tax notice from an Inland Revenue officer on the basis of such data.

Nadra can play a pivotal role in devising a refined integrated database with advanced equipment. All revenue administrations in the country must be integrated; the centre must ensure that the provinces too have access to FBR data.

The menace of the undocumented economy — and its attendant ills such as money laundering and terror financing — can be contained through a verified registration mechanism that, among other things, actually revives efforts to broaden the tax base. A genuine effort towards this end, instead of the usual platitudes, would go a long way in substantiating tax collectors’ assessments through corroborated data.

Paying taxes, as well as collecting them, has never been a pleasant task anywhere in the world. However, in our case, we also lack awareness of the benefits of paying taxes. Most people with taxable incomes have no idea that if they file their tax returns they can claim refunds of large amounts that have been withheld by the banks, or sums that they have had to pay on the sale or purchase of immovable property, or money deducted on cellular phones bills, etc.

In this era of ICT, authorities need to extract relevant information tactfully, and simultaneously develop effective communication strategies. Electronic, print and social media can be engaged more frequently in this regard. Well-researched and high-quality tax base policies that are pursued proactively (with the intention to help business instead of putting restrictions on it) are needed.

Taxation is not meant to kill a business. An excellent tax policy takes into account all elements that are necessary for economic growth. Business-friendly policies, registering whatever is unregistered, using and evolving an integrated database, increasing the number of taxpayers’ facilitation centres, while also conducting awareness campaigns, may pave the way to increasing revenue receipts for the National Finance Commission. The effective execution of audit provisions in relevant laws in certain sectors also helps with strategic taxation.

On the one hand, the public’s concern that those in the corridors of power are recklessly spending the hard-earned money of taxpayers needs to be allayed. On the other, civil society and academia have a role to play in improving Pakistan’s tax culture. It would be a positive step to remind people to always ask for receipts whenever they pay for goods and services.

Importantly, it is the responsibility of the political leadership to set an example for the public to follow; they should be seen to be paying their taxes. To quote Hillary Clinton, we need to prioritise taxing the powerful. We also need to inculcate in the minds of our next generation (particularly through school and college syllabi) that paying taxes is an essential part of a civilised and healthy society.

The writer is a civil servant and former judge.

[email protected]

Twitter: @RashidJavedRana

Published in Dawn, March 1st, 2018

Something else about March 23

A woman’s story

All that glitters

ڈان انویسٹی گیشن: بحریہ ٹاؤن کراچی کی مسلسل غیرقانونی توسیع کی مشکوک کہانی

سکندر اعظم نے کس بادشاہ کی موت پر کہا کہ ایک بادشاہ کو اس طرح نہیں مرنا چاہیے؟

‘زخم اور ہڈی ٹوٹی ہوتی تو بریانی کیسے بناتا؟’، انور مقصود کی افواہوں کی تردید

Weekly Economic Roundup: Global Warming To Raise Food Prices

IHC Judges Speak Out Against Alleged Interference By Agencies

“Pakistanis Must Prepare For Further Economic Crutch”

America And China Are Destined To Be Rivals: Steven R. David

Week’s Must-Know Headlines: National Day Of Mourning In Russia After Concert Hall Massacre

Bahria Town-Linked Firm On FBR Radar For ‘Laundering Rs23Bn’

Pakistan Urges Afghanistan To Address Terrorism

How Is The World Reacting To Moscow Attack?

Latest stories.

Punjab govt issues show-cause notice to PML-N MPA Malik Waheed over ‘misbehaviour’ with police official

Ahad Cheema urges Punjab governor to continue Aitchison’s fee policy but withdraws from availing facility himself

Julian Assange wins temporary reprieve from extradition to US

Indian opposition supporters detained ahead of protest at Modi’s Delhi home

Major bridge collapses in Baltimore after cargo ship rams into pylon

IMF programme no excuse to retard growth: PM Shehbaz

People are unsatisfied with the UN Security Council resolution for a Ramazan ceasefire in Gaza

Adnan Malik pays tribute to his friend, ‘warrior and visionary’ Khadijah Shah

Liberating literature: five powerful books about women by women, most popular.

Principal of Lahore’s Aitchison College resigns citing ‘unwarranted interference’ by Governor House

Russia casts doubt on Islamic State responsibility for concert attack

Snowless winter, surprise rain, unusual cold wave: what is up with pakistan’s weather.

The ‘prince’ who used his diplomatic skills to serve cricket

Islamabad police book Gaza protesters, JI’s Mushtaq Ahmad for holding rally in violation of Section 144

In phone call with British counterpart, FM Dar stresses early resumption of PIA flights to UK

Imad Wasim, Mohammad Amir among 29 players picked for Kakul fitness camp

Dawn Investigations: Bahria Town — catch me if you can

Muhammad Aurangzeb appointed finmin to ‘settle down’ IMF, says PPP’s Khursheed Shah

Editorial: Will Israel abide by UNSC resolution on Gaza or live up to reputation of being rogue state?

Efforts to bring women in the mainstream have to begin with changing mindsets

Wasting waste

Censorship with impunity

Ceasefire, finally

Afghan return, planes and plans.

Smog country

Taxing traders.

IHK political curbs

Pakistan receives $9.53bn in foreign loans.

• Privacy Policy
• Our Authors
• Subscribe Us
• Google Plus

Essay Outline: Promotion of Tax Culture in Pakistan

Table of Contents

It is an open secret that writing standard English and grammatical accuracy play a vital role in success in essay writing for CSS Exam. You should know the art of literary and scholarly writing. It needs a long discussion to expatiate about improving written English but let me give you some rudimentary tips. A basic attribute which is to learn idiomatic usage in writing an essay should be developed. For earning grammatical accuracy in your writing, study English grammar thoroughly ( not cursorily ) to learn the correct usage of grammatical units i.e. verbs, adverbs, adjective, coordination, subordination, subject-verb agreement, phrasal verbs etc.

Maximum Size 2.5 Pages

Minimum Size 1.5 Pages

Your outline should be strictly adhered to the topic so that if one reads your Outline without knowing the topic he should reach the topic himself. This is the mirror test of a good outline.

You can use Headings and Sub Headings but keep it in mind make it as lengthy as manageable within time. Too long outline will require time for expansion and closure. You can trim you essay outline if it is too lengthy. But is should not be too short as well.

Your Outline has an effect on the examiner about you.

• Definition of tax culture
• Tax culture around the world
• Check also: English Grammar MCQs
• Reasons due to which people don’t pay taxes
• Lack of awareness about tax system
• Complex tax system and codes
• Harassment of the tax-payers
• Corruption in the administration
• Badly carried out amnesty scheme
• Lack of tax incentives
• Dependence on sales, income and custom tax
• Usefulness of current tax system and its inherent inefficiencies
• Negative public attitude
• Need for promotion of tax culture in the country and its significance.
• Restructuring FBR
• Broadening tax base
• Automation of FBR to facilitate stakeholders
• Moving to direct tax from indirect
• Incentive based tax system.
• Public Awareness campaign
• Red-Tapism:
• Rampant Corruption:
• Complex tax code:
• Tax illiteracy:
• Meddled Center-Provincial tax system:
• Large undocumented economy:
• Public-Government Mistrust:
• Conclusion :

Watch Video: 25 Preparation Tips on How to Study for CSS at home

Check our daily updated ‘s Com plete Day by Day Current Affairs Notes MCQs

• Daily Top-10 Current Affairs MCQs / News (February 07 2024) for CSS
• Daily Top-10 Current Affairs MCQs / News (February 06 2024) for CSS
• Daily Top-10 Current Affairs MCQs / News (January 26 2024) for CSS
• Daily Top-10 Current Affairs MCQs / News (January 25 2024) for CSS
• Daily Top-10 Current Affairs MCQs / News (January 24 2024) for CSS
• Daily Top-10 Current Affairs MCQs / News (January 23 2024) for CSS
• Daily Top-10 Current Affairs MCQs / News (January 22 2024) for CSS
• Daily Top-10 Current Affairs MCQs / News (January 19 2024) for CSS
• Daily Top-10 Current Affairs MCQs / News (January 18 2024) for CSS
• Daily Top-10 Current Affairs MCQs / News (December 30 2023) for CSS

About the author

Shahzad Faisal Malik is the administrator of CSSTimes.pk and is responsible for managing the content, design, and overall direction of the blog. He has a strong background in Competitive Exams and is passionate and sharing information with others. Shahzad Faisal Malik has worked as a Graphic Designer/Content Creator at CSSTimes in the past. In his free time, Shahzad Faisal Malik enjoys watching Cricket, writing blogs for different websites and is always on the lookout for new and interesting content to share with the readers of this website. As the website administrator, Shahzad Faisal Malik is dedicated to providing high-quality content and fostering a welcoming and engaging community for readers. He looks forward to connecting with readers and hearing their thoughts and feedback on the website.

You may also like

Essay Outline: Electoral Reforms in Pakistan:...

Health for All | Essay Outline for CSS PMS

Art and Morality Essay Outline

Instruction in Youth is Like Engraving in Stone |...

Essay Outline “Good Governance is deeply rooted in...

CSS Essay Outline | The Importance of Water...

Leave a comment x.

A wonderful information.

• Insaaf Camp

• Guest Columnists
• Treaty Review
• Know Your Rights
• Book Review
• Draft Bills
• Judgment Analysis
• International
• Ombudsperson
• Law Officers
• Bar Associations
• In House Lawyers
• Law Schools
• Alternative Dispute Resolution (ADR) Centres
• Special Monitoring Unit (SMU)
• How To Guide
• English - Urdu Translation
• Legal Terms
• Scholarships
• Jobs in Law
• Video Blogs
• Entertainment
• Promoting Tax Culture in Pakistan

Every time you travel in your car or use public transport for commuting, you travel on roads, bridges and highways, which are made and maintained by the government. You study on a nominal fee in government (financed) colleges or Universities, compared to the high fees of private universities. The needy women are given monthly stipends by the government through income support programmes. All these projects are financed by the government through the taxes paid by the masses. Taxes are paid by the elite and the middle class and are used to finance the development of the  infrastructure in the country and to establish an egalitarian society.

Pakistan has been in the grip of the taxation crisis since its inception because the country lacks a tax culture. That is why only 0.3% of the total population pays direct tax in Pakistan, which makes Pakistan’s tax-to-GDP ratio only 9.45% – one of the lowest in region.

The Government of Pakistan earns 55% of its tax revenue through indirect taxes, while 45% of it is collected through direct taxes – 70% of which is in the form of withholding tax. This ratio is uneven since indirect taxes effect everyone’s expenditures, including the poor, while direct taxes are only taken from elite and middle class, and is used for the general welfare and human development projects.

As a result of low tax collection, the state funds its development and infrastructural projects through debt financing. Consequently, the major chunk of the state’s revenue is spent on paying these debts with costly interests levied by donors.

The tax net in Pakistan is very low, which is why the current government has taken some positive steps to broaden the tax net in Pakistan. The Federal Board of Revenue (FBR) has started campaigns for promoting tax culture in Pakistan. It has announced various incentives for tax payers, which includes, concession for people who file income taxes, who pay registration, transfer, and provide token fees of motor vehicles. In addition, the FBR is considering a proposal which imposes a low tax rate for those traders and industrialists who disclose their hidden income. The major step for broadening the tax net is the announcement of withholding tax (WHT) on bank transactions above fifty thousand rupees for non-filers of income tax. The trade unions are protesting against WHT for the past few weeks, as the majority of traders are non-filers. By enforcing WHT, they either have to pay tax on bank transactions or they have to become filers of income tax to avoid WHT. After becoming filers, they must pay regular taxes which they are not currently paying. So, the strikes of trade unions are only for the purpose of tax avoidance and do not fall under the tax net category of the country. Sadly, some opposing parties are supporting the strikes of trade unions for petty political gains, whereas, these opposing political parties should support the stance of the government, as the traders have no locus standi .

However, more efforts on behalf of the government are needed to promote tax culture in Pakistan. The Federal Board of Revenue should be declared as an autonomous entity, free from political clutches. The mal-administration of FBR should be corrected in order to make it tax payer friendly. The FBR was known as one of the most corrupt departments in Pakistan by Transparency International, which is why a strict accountability mechanism should be enacted to check the corrupt behavior of officials at the FBR. Optimum tax rates should be levied and everyone should be taxed according to their capacity and ability to pay tax. The FBR should pay due refunds to taxpayers which are dilly-dallied by its officials. One other important demand is the establishment of tax courts in Pakistan because there are no tax courts in Pakistan. The first and second appellant forum for an aggrieved taxpayer is the Commissioner/Collector Appeals, who are also officials of the FBR. The second appeal lies before the tribunal whose members are appointed by the FBR. Hence, the aggrieved taxpayer has to to seek relief against FBR through FBR officials. Tax courts, free from the control of the executive, should be established.

More importantly, the public trust on the taxation system of Pakistan should be established. Transparency should be an important element to be ensured– something that can only happen if everyone is taxed fairly and justly. The public should be guaranteed that their taxes are public money which will be used for their welfare, for establishing a better educational system,  better standards health facilities, and for building roads, dams etc.

This development requires money, and money comes from taxes.

There is also a concept of public responsibility, which needs to exist. People should understand that the reason of heavy indirect taxes is the non-payment of legitimate direct taxes. This forces the government to levy indirect taxes, the burden of which is shared by everyone. An example of this would be increasing taxes on fuel and electricity.

If everyone starts paying their due taxes regularly, the state’s revenue will increase. With an increase in revenue, the government will be able to invest more in education, health and development schemes. More dams can be built to prevent floods and to end power crises. Internal security apparatus of the country can be improved by enhancing the capabilities and equipment of law enforcing organizations.

The public phenomenon of tax should be changed. If we want to promote a tax culture in our country, the following principle should be followed:

‘Paying taxes makes state treasury strong, which makes a country stronger.’

The views expressed in this article are those of the author and do not necessarily represent the views of any organization with which he might be associated.

Author: Taimur Ali Khan Mohmand

The writer is a practicing lawyer in Islamabad.

If the Government earns sufficient revenue from the direct taxation then will the State be bound to reduce our even eliminate indirect taxation? At one point you mentioned “legitimate direct tax”, can we infer from it the illegitimate indirect tax?

Very well said. Need is to promote tax culture.

Interesting point raised of tax courts. FBR official will always prefer decision in favor of its department.

Pakistan’s Tax Culture

A tax culture in its ordinary definition shows us the existing tax activities and tax principles of a specific country. Both the actions and reactions of taxpayers and tax collectors are the foundational basis of the tax culture. 

In Pakistan tax culture, taxes are categorized into two main categories: 

• Direct tax . 
• Indirect Tax . 

Direct tax is simply the tax on your income. On the other hand, indirect tax is sale tax, service tax, customs duty, and excise duty. 

The Government of Pakistan equipped the Federal Board of Revenue (FBR) to impose and collect the taxes. The motive of FBR is to expand the tax net and to broaden the tax collection capacity while using certain tax collection techniques, assistance to taxpayers, and empowering the dedicated workforce.        

According to FBR, only 1% of the total 220+ Million population of Pakistan pay taxes. If compared to India around 4% of the total 1.38 Billion population pays taxes. Pakistan’s tax-to-GDP ratio is equal to 10.2% taxes of the $263.7bn GDP according to the 2021FY.  Pakistan ranks at 161st position internationally in terms of taxpayers ratio. 

Following these consequences of tax affairs, the fiscal deficit has become a prolonged macroeconomic issue of Pakistan’s economy. Pakistan’s fiscal deficit stands at 7.1% (3.403 trillion) of GDP in the year 2020-2021 . Fortunately, this is the lowest fiscal deficit ratio in the last three financial years. 

People avoid, escape, and hesitate to pay taxes because of multiple reasons, few of them are: 

• Lack of tax awareness. 
• Dishonest public regime. 
• Corruption in departments. 
• Exploitation of taxpayers. 
• Complicated tax procedures and regulations. 
• Heavy tax reliance on income and sale. 

According to the survey report of FBR 2019, FBR identified various factors which lead to demotivation and discouragement in the general public referring to paying taxes, these factors includes: 

• 51% of the people do not pay taxes because of the corruption in the governance system. 
• 20% of the people do not pay taxes because of their belief in the misuse and exploitation of tax money. 
• 18% of the people do not pay taxes because they have low income and are left with less disposable income. 
• 9% of the people do not pay taxes because of faults in the tax collection mechanism.   
• 2% of the people do not pay taxes because they find taxes and tax filing as a burden.  

Our society’s dilemma is that the general public perceives the certain amount which is collected through taxes is looted by the regime rulers and then spent on the luxury lifestyle of the powerful and elite class in Pakistan. 

Frequently, the government of Pakistan spends the taxpayers’ money on non-productive projects such as building roads, flyovers, and insufficient public transport. If the elite class intends to pay the taxes and the government ensures the appropriate utilization of the taxes then an estimated 90% of the eligible people would be following to pay the taxes.     

The government must develop a comprehensive tax system, in which it should incorporate all the tax mechanisms, tax norms should be compatible with our tax culture, and in order to nourish and flourish the tax culture, the government must emphasize on prevailing the tax mentality in the society.

Suggested Blog Posts

How to become tax filer in pakistan, online ntn registration in pakistan, income tax return, e-filling & ntn registration.

The easiest & quickest way to become a filer online. Register NTN, file income tax, check your FBR tax return. Filing taxes in Pakistan has never been easier before.

Tax Questions & Tools

Salary calculator.

Tax Services

accounts, amnesty, befiler, blog, business, calculator, capital, earning, excise, expense, fbr, filer, financial, house, income, invest, law, ntn, online, organization, pakistan, portal, property, returns, salary, sales, scheme, service, tax, withholding, AOP, Business registration, Online Preparing Tax Filing, NTN registration, NTN Verification, Salary tax calculator, FBR tax filing, Tax return, E-filing

Provide details on what you need help with along with a budget and time limit. Questions are posted anonymously and can be made 100% private.

Studypool matches you to the best tutor to help you with your question. Our tutors are highly qualified and vetted.

Your matched tutor provides personalized help according to your question details. Payment is made only after you have completed your 1-on-1 session and are satisfied with your session.

• Homework Q&A
• Become a Tutor

All Subjects

Mathematics

Programming

Health & Medical

Engineering

Computer Science

Foreign Languages

Access over 20 million homework & study documents

Promotion of tax culture in pakistan: perspective, prospects and challenges.

Sign up to view the full document!

24/7 Homework Help

Stuck on a homework question? Our verified tutors can answer all questions, from basic  math  to advanced rocket science !

Similar Documents

working on a homework question?

Studypool is powered by Microtutoring TM

Copyright © 2024. Studypool Inc.

Studypool is not sponsored or endorsed by any college or university.

Ongoing Conversations

Access over 20 million homework documents through the notebank

Get on-demand Q&A homework help from verified tutors

Read 1000s of rich book guides covering popular titles

Sign up with Google

Sign up with Facebook

Already have an account? Login

Login with Google

Login with Facebook

Don't have an account? Sign Up

• nawaiwaqt group
• Roznama Nawaiwaqt
• Waqt News TV
• Sunday Magazine
• Family Magazine
• Nidai Millat
• Mahnama Phool
• Today's Paper
• Newspaper Picks
• Top Stories
• Lifestyle & Entertainment
• International
• Editor's Picks
• News In Pictures
• Write for Us

Poor tax culture

Pakistan is one of the countries in the world with the lowest tax-to-GDP ratio standing below 10 percent for many decades except for a few years. The tax collection is far below the potential of the economy due to weakness in the machinery of the revenue collection authority but it also signifies the prevailing poor tax culture in the country in which people hate to pay their taxes to the government. The low collection of taxes, direct and indirect, is the core issue for our ailing economy. The country cannot progress towards economic development and prosperity without addressing it properly. Numerous think tanks estimated that the country needs to enhance its tax-to-GDP ratio up to 15 percent gradually, which is a herculean but a doable task that could be accomplished in phases within three years of sustainable efforts. Improvement in tax collection could be carried out with consistent efficiency in the system of revenue collection and promoting the culture of tax wherein people voluntarily pay their due share of taxes themselves as responsible citizens. The new taxpayers’ directory unveiled that the situation of tax collection has been very disappointing with no significant improvement in this area. As many as 177 lawmakers have been identified who did not pay a single penny on the account of taxes even from the monthly income they draw from taxpayers’ money. It is shocking to know that a CM of the biggest province Usman Buzdar, and federal ministers like Faisal Vawda and Zartaj Gul were included in the list. To make the case worse, a majority of the lawmakers did not submit the taxes as per the assets they declared and their earning from the various sources. It is a highly embarrassing situation for the political parties having these parliamentarians although it is their prime responsibility to force them to abide by a very crucial obligation. These lawmakers, including MNAs, senators, MPAs should be declared defaulters and unseated immediately till they file their returns and submit their taxes. Of course, the trend discourages a layman including salaried persons, entrepreneurs and businessmen from being loyal and generous to the state of Pakistan when a class of the representatives does not bother to file their tax returns. The tax culture in Pakistan cannot be promoted unless our parliamentarians contribute to tax collection honestly from all available income sources and assets; whatever they own. It is crucial because if the change does not occur in the parliament, it will simply not translate in the whole country. The second most essential aspect to promote tax culture is to spend the taxpayers’ money on socio-economic prosperity and welfare of the masses. This is how developed and progressing countries are scaling up their tax-to-GDP ratio up to 50 percent. This spending is not merely a simple phenomenon of paying back to the citizens but it is investment, in fact, which further multiplies monetary benefits in the economy and will also generate more revenues for the national kitty. The Pakistani nation is surprisingly generous. It pays billions of rupees every year to underprivileged, deserving and poor fellow citizens. Yet, the GDP to philanthropy ratio of the country stands after developed countries like the USA, New Zealand, Canada and others. Nearly 1 percent of GDP is spent on charity by 98 percent of Pakistanis according to a report. Various charitable institutions backed by resident and overseas Pakistanis are working for various noble causes to support poor across the country. So if people happily contribute to charitable activities, why not contribute to nation building; once trust is built by the government over its efficiency? Mega cities like Karachi which generate the highest taxes in the country should be given priority for the investments, which ultimately will thrive businesses from the macro to micro level and then return back taxes to the government. The present government has taken a few commendable initiatives to enhance tax collection countrywide and secured notable successes in this regard. Highly-paid professionals including doctors, engineers, teachers were brought into the tax net. Traders of various shopping centres and retail shops were also taxed in the metropolis. Hence, the government collected a handsome amount of Rs50 billion from above the target of financial year 2019-20 despite the slowdown of the economy following the COVID-19 outbreak. The introduction of a mobile application and the use of social media for awareness and filing tax returns seems a very good approach for the government. However, the government should immediately accomplish its task to separate the wings of policy and mechanism of the Federal Board of Revenue. The digitisation and documentation of the economy is also a comprehensive step that will support the government in collecting taxes. Overall if the economy is set to revive, additional tax revenues could be generated on a sustainable basis with a free hand to taxmen, tapping the widespread untaxed areas, release of timely refunds, and improving the tax culture. If we, as a nation, are capable of enhancing the tax-to-GDP ratio at 15 percent, we will not need to borrow money from external sources and the socio-economic woes could be addressed effectively in the country.

Govt plans to split PIA into two entities ahead of privatization

Muhammad Yasir

Related News

Promise and responsibility, affordable healthcare, justice demands, conflict brewing, lost innocence, un security council demands immediate ceasefire in gaza, pti seeks ihc cj recusal in imran cases, as crime rate surges, punjab cm seeks daily situation report, pakistan wants to promote trade with afghanistan: fo, video shows tta planning attack on pak forces, moscow mourns as concert hall death toll rises to 137, jui-f's senator talha mahmood joins ppp, uk accuses china of being behind cyberattacks on institutions, parliamentarians, financial inclusion is impossible without women empowerment , around the world in culture, pakistan day being celebrated today, the myth of css success, uk fostering indo-pak peace, space technologies and sdgs.

The Solution

Citizenship amendment act - muslims under ..., citizenship amendment act - muslims under threat in modi's ..., game of kings and the king of games: polo, textile exports earn $11.14 billion for ..., textile exports earn $11.14 billion for pakistan in eight ..., balochistan's path to prosperity: empowering ..., balochistan's path to prosperity: empowering youth through ..., israel-made famine, sporting autonomy, political turmoil, revitalising our commute, combatting begging exploitation, karachi congestion, epaper - nawaiwaqt.

Newsletter Subscription

Advertisement.

NIPCO House, 4 - Shaharah e Fatima Jinnah,

Lahore, Pakistan

Tel: +92 42 36367580    |     Fax : +92 42 36367005

• Advertise With Us
• Privacy Policy

Nawaiwaqt Group | Copyright © 2024

• Skip to primary navigation
• Skip to main content
• Skip to primary sidebar
• Skip to footer

Daily Times

Your right to know Tuesday, March 26, 2024

Tax culture in Pakistan

July 19, 2019

Sir: Tax culture is certainly the very first and foremost priority given by the country as it being the supreme source of revenue of a state, that’s why every country puts its hardest efforts to maintain a good image of integrity in front of populace. The current tax regime of Pakistan has failed to facilitate the citizens. Simultaneously, oppressing and crushing the low and middle class families.

Nothing has remained untaxed whether through direct or indirect procedure. The government has even made the scenario of increments in tax collection for the next year as well and this will deliberately throw us in a dismal state.

Briefly, the reasons due to which people do not pay taxes are, lack of awareness about tax system, harassment of the tax payers, corruption in the administration, dependence on sales, income and custom taxes, red tapism, and the bizarre tax procedure as compared to other countries.

The present government must ensure endeavors, tax amnesty and earn the belief of people.

ASIF MURAD UMRANI

Submit a Comment

Home Lead Stories Latest News Editor’s Picks

Culture Life & Style Featured Videos

Editorials OP-EDS Commentary Advertise

Cartoons Letters Blogs Privacy Policy

Contact Company’s Financials Investor Information Terms & Conditions

• Beginner's Guide
• Past Papers
• CSP Members
• Members List
• Social Groups
• Mark Forums Read

Home — Essay Samples — Geography & Travel — Pakistan — History of Income Tax in Pakistan

History of Income Tax in Pakistan

• Categories: Pakistan

About this sample

Words: 990 |

Published: Sep 14, 2018

Words: 990 | Pages: 2 | 5 min read

Cite this Essay

Let us write you an essay from scratch

• 450+ experts on 30 subjects ready to help
• Custom essay delivered in as few as 3 hours

Get high-quality help

Prof. Kifaru

Verified writer

• Expert in: Geography & Travel

+ 120 experts online

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy . We’ll occasionally send you promo and account related email

No need to pay just yet!

Related Essays

5 pages / 2324 words

2 pages / 731 words

3 pages / 1538 words

4 pages / 1923 words

Remember! This is just a sample.

You can get your custom paper by one of our expert writers.

121 writers online

Still can’t find what you need?

Browse our vast selection of original essay samples, each expertly formatted and styled

Related Essays on Pakistan

Quaid-e-Azam Muhammad Ali Jinnah, often referred to as the "Father of the Nation" in Pakistan, was a visionary leader whose leadership and political ideologies played a pivotal role in the creation of Pakistan. This essay [...]

Pakistan, a nation characterized by its rich cultural heritage and diverse landscapes, is grappling with a growing concern – the environmental challenges plaguing its big cities. As these urban centers continue to swell with [...]

An ordinary girl with special hopes and dreams, Malala stood out from the others in her Pashtun tribe. She was born on July 12,1997 in the Swat Valley, (just northwest Pakistan). Living in Pakistan, Malala was at the top of [...]

Every country has its own affairs which sometimes comes up on the air and spread all around the world. Pakistan is one the country that is always remained at top of the biggest controversy due to its political affairs, terrorism [...]

This paper examines the connection between the media and state in the Musharraf time in setting of Social conduct. In the earlier decade there were giant changes in the media scene of Pakistan. General Pervez Musharraf, who went [...]

Tourism is on the peak from two years in Pakistan. The time is long gone when immeasurable Americans, British, Canadians, Chinese, Germans, Australians, and people from all over the world used to visit Pakistan to see its [...]

Related Topics

By clicking “Send”, you agree to our Terms of service and Privacy statement . We will occasionally send you account related emails.

Where do you want us to send this sample?

By clicking “Continue”, you agree to our terms of service and privacy policy.

Be careful. This essay is not unique

This essay was donated by a student and is likely to have been used and submitted before

Download this Sample

Free samples may contain mistakes and not unique parts

Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

Please check your inbox.

We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!

Get Your Personalized Essay in 3 Hours or Less!

We use cookies to personalyze your web-site experience. By continuing we’ll assume you board with our cookie policy .

• Instructions Followed To The Letter
• Deadlines Met At Every Stage
• Unique And Plagiarism Free

Problems With Tax Culture In Pakistan

The post explains “Problems With Tax Culture In Pakistan . Challenges to tax culture in Pakistan. Problems With Tax Culture In Pakistan . Tax evasion culture in Pakistan. Prosecution and promotion of tax culture in Pakistan. Problems of taxation system in Pakistan.”

Pakistan Studies MCQs With Answer Online Test

Taxing people is one of the major sources of a state’s revenue system. A tax is a financial charge that a government imposed on taxpayers through different means. Revenue generated through tax is then invested by the government in various public development projects. Basic principle of taxation is to tax the rich and spend the money for the welfare of all and sundry.

Challenges To Tax Culture In Pakistan

Pakistan is one among the few states whose tax system has many loopholes and therefore the country is facing an acute budget deficit problem. As long as these problems are not addressed properly the country cannot progress economically.

Narrow Tax Base

The tax base of Pakistan’s tax system is narrow which means that some sectors such as agriculture has been exempted from taxation. Similarly some sectors are not taxed as per their performance and some taxpayers successfully evade tax payment.

Undocumented Property

It has also been observed that in Pakistan the elite class usually documented their properties with fake names or with the names of their relatives. In this way they either succeeded in tax evasion or in reduction of payable amount.

Money Laundering

It is another major hurdle in tax collection system in Pakistan. This problem gained much attention in Pakistan after Panama Leaks scandal. Almost all political elites of Pakistan are involved in this crime. These days we see that the chairman of Pakistan Muslim League (N) and Pakistan People’s Party (PPP) are facing trial in money laundering case.

Intentional Ignorance Of Political Elites

The intentional ignorance of political leaders towards the enhancement and development of a strong tax culture in the country is also a major problem. One of the major reasons behind the lack of political will of the political leaders of the country is their involvement in tax evasion practices.

Solutions For Economic Crisis Of Pakistan

Politically Paralyzed Institutions

Another major problem with tax culture in Pakistan is that the corrupt political leaders of the country through their political powers have paralyzed all the tax collecting institutions. Due to this reason tax collecting agencies failed to collect targeted level of tax every year.

Large Number Of Taxation Agencies

Large number of tax collecting agencies is also a problem. In Pakistan more than Seventy taxes are collected and managed by Thirty Five agencies. Such a large number of agencies have made the collection process much intricate.

Public Reluctance

Public reluctance to tax payment has made the tax culture even more worsen. Taxpayers in order to avoid tax payment create many hurdles for the agents that not only slow the process but also results in low rate of collection.

Corrupt Agents

Corrupt agents of the national tax collecting agencies that either for monetary or political motives help taxpayers in tax evasion, is also a major problem.

Low Public Awareness

Public low awareness about the benefits of the payment of tax is another major problem.

One of the major reasons behind all the above mentioned problems is the lack of trust of people in national institutions and government. Over the past decades if government has sincerely invested tax money for the welfare of people and the country then today we would not face most of these challenges. The eighteenth century Americans’ famous notion “No Taxation without Representation” exactly defines the reluctant behavior of Pakistani taxpayers.

Related Posts

The Star-crossed Children – Child Labor in Pakistan

Women Rights Issue in Pakistan CSS

Civil Military Relations in Pakistan CSS

Short Note On Jallianwala Bagh Massacre – Causes and Consequences

About the author.

Askedon helps aspirants in their preparation for CSS, PMS, PCS and one paper MCQs based tests. We have syllabus wise complete notes of Current Affairs, Pakistan Affairs, Islamiat, Essay, Gender Studies and many other compulsory and optional subjects of CSS, PMS and PCS. The blog is owned and managed primarily by Ataulhaq Yusufzai. For more details please visit About US and Privacy Policy page.

Leave a Comment Cancel Reply

FSc Notes & Essays

An educational blog published in your interest to brighten your future and to make you lead and succeed.

Search This Blog

• That the language should be simple, idiomatic, clear and straightforward.
• That the presentation of ideas should be easy and comprehension for the students concerned.
• That it covers a large number of topics so that with the suitable adjustment you could be used this content for various purposes.
• That the presentation of the website should be methodical and help the students to cultivate the habit of forming their own ideas with the help of given topics here.

Tax Culture in Pakistan: Perspective, Prospects and Challenges

• Introduction 
• Currency of the Issue 
• Challenges in the Way of the Growth of a Vibrant Tax Culture in Pakistan
• Lack of awareness of tax laws among the masses
• Informal and undocumented economy 
• Absence of tax culture in political elite
• Trust deficit between the rulers and the masses 
• Increasingly complex nature of tax system 
• Uncontrolled corruption in the taxation machinery 
• Harassment of the tax-payers 
• Lack of punishment for non-payers and corrupt officials
• Badly carried out amnesty scheme
• Lack of professionals in the system 
• Wide-ranging Effects of Dysfunctional Tax System 
• Low tax-to-GDP ratio 
• Abysmal conditions in public service sector 
• Widespread illiteracy 
• Entrenched poverty 
• Accelerated institutional decay 
• Increased burden of indirect taxation 
• Over-reliance on foreign aid and loans 
• Poor painting of national image
• How to Improve Prospects with Respect to Tax Collection
• Educating the nation 
• Simplification of the tax system and codes 
• Friendly environment for the tax-payers 
• Punishing the culprits 
• Rulers leading by example
• Reviving trust of the common people on the government 
• Awareness campaigns through print and electronic media 

Post a Comment

Related posts, my hobby (reading books) essay with english quotation for students, hostel life - complete english essay with outlines & quotes, essay on journey by train - a memorable day.

1(888)499-5521

1(888)814-4206

Johan Wideroos

Customer Reviews

Need a personal essay writer? Try EssayBot which is your professional essay typer.

• EssayBot is an essay writing assistant powered by Artificial Intelligence (AI).
• Given the title and prompt, EssayBot helps you find inspirational sources, suggest and paraphrase sentences, as well as generate and complete sentences using AI.
• If your essay will run through a plagiarism checker (such as Turnitin), don’t worry. EssayBot paraphrases for you and erases plagiarism concerns.
• EssayBot now includes a citation finder that generates citations matching with your essay.

Advertisement

Supported by

A Sweeping New Immigration Law Takes Effect in Texas

There was no immediate response along the border after the U.S. Supreme Court cleared the way for Texas police to arrest and deport migrants. Officials have not said when enforcement would begin.

• Share full article

By J. David Goodman

Reporting from Eagle Pass, Texas

Read the latest on the Texas immigration law .

The most aggressive state-level immigration law in the nation went into effect in Texas on Tuesday after the U.S. Supreme Court temporarily sided with Gov. Greg Abbott in his increasingly bitter confrontation with the Biden administration over border policy.

The law makes it a crime for migrants to enter Texas from Mexico without authorization, and creates a process for state courts to order migrants charged with violating the law to return to Mexico, no matter their national origin.

The high court ruled that the law could temporarily go into effect while a federal appeals court further considers whether to override a lower-court ruling that found the Texas measure unconstitutional on a variety of grounds.

“Huge win,” Ken Paxton, the Texas attorney general, said in a statement. Mr. Abbott, the governor, sounded a slightly more cautious note about the Supreme Court’s decision, describing it as “a positive development.”

The U.S. Court of Appeals for the Fifth Circuit said that it would hold oral arguments Wednesday morning on whether the lower-court injunction blocking the law should be allowed to stay in effect while the full appeal is underway.

The sudden clearance for the law to go into effect appeared to catch Texas officials off guard. As of Tuesday evening, no date had been set for enforcement to begin. Two state officials said that the timing was still being discussed and that arrests could begin within days.

By allowing arrests to begin in Texas, even temporarily, the Supreme Court injected a new element of uncertainty to what has already been a divisive national debate over immigration, ensuring that the issue remains a centerpiece of the 2024 race between President Biden and former President Donald J. Trump.

Now, the fate of a migrant arriving in Texas could be vastly different than one arriving in New Mexico or Arizona.

Karine Jean-Pierre, the White House press secretary, said that the Biden administration disagreed with the court’s ruling and that the new law would “sow chaos and confusion at our southern border.”

In a statement, the Mexican government said that it “categorically rejects" any law that allows state or local authorities in the United States to “arrest and return nationals or foreigners to Mexican territory” and that it would not accept deportations made by Texas.

As the Supreme Court’s ruling came down, National Guard troops stationed in the border city of Eagle Pass, as part of Mr. Abbott’s border enforcement efforts, sat in Humvees in a city park that has been taken over by Texas in an attempt to prevent crossings there. Others troops patrolled the waters of the Rio Grande near tall fences topped with razor wire.

Until now, they have only had authority to make trespassing arrests on private land, with the landowner’s permission. There were few signs along the border on Tuesday that the legal landscape had changed.

In any case, there have been few migrant crossings in the area in recent days, officials said, reflecting a sharp overall decline in crossings into the United States from Mexico since a peak in December.

Any new arrests were expected to be primarily conducted by Texas Department of Public Safety officers who have been assigned to the border as part of Mr. Abbott’s border program, known as Operation Lone Star.

Texas officials have said in court filings and interviews that they would focus their enforcement of the law on single men and women observed by officers crossing the Rio Grande from Mexico. Families would be turned over to U.S. Border Patrol agents, as is currently the practice.

“Our focus will be more on single adults, not families,” Lt. Christopher Olivarez, a spokesman for the Texas Department of Public Safety, said in an interview before the Supreme Court’s ruling. “Single men, single women.”

“That’s how we do it right now with criminal trespass,” he added.

For more than two years, state police officers in Texas have already been charging migrants found on private land with criminal trespassing. But the new law would allow them to make arrests anywhere in the state. And any officer is permitted to enforce the new law, empowering sheriffs, county constables and local police officers far from the border to engage in immigration enforcement.

The expansiveness of the law, often referred as Senate Bill 4 or S.B. 4, brought sharp criticism from civil rights and immigrant advocacy groups as well as Texas Democrats. Tempers flared during debate over the law in the State Legislature last year.

“This is a dangerous day for our democracy,” said Representative Armando Walle, a Houston Democrat who strongly objected to the law. “S.B. 4 will not make our border more secure. It will instead spread fear in our communities.”

Anand Balakrishnan, a senior staff attorney at the American Civil Liberties Union, which had sued Texas over the law along with the Biden administration, said the Supreme Court’s decision “threatens the integrity of our nation’s immigration laws and bedrock principles of due process.”

Some county leaders along the border and sheriffs who operate county jails had expressed concern that the new law could lead to their courts and jails being overrun with migrants. A first offense is a misdemeanor under the law. A second offense is a felony.

In a court filing by Texas as part of the federal case, Victor Escalon, a top leader from the state public safety department, said officers would concentrate enforcement in areas near state prison facilities, which have already been used as jails for migrants awaiting trial on trespassing charges.

Mr. Olivarez said in the interview before the Supreme Court ruling that any initial rounds of arrests would probably be limited by the capacity of processing centers in the city of Del Rio and in Jim Hogg County, which were set up to handle trespassing arrests. He said each had space for around 100 migrants during initial court processing.

Mr. Olivarez pointed to a period last summer when large numbers of migrants were crossing and state police officers had to limit the number of arrests they could make at any one time. “We made 30 to 40 arrests within the first hour, and then we had to kind of hold off for the rest of the day because we were at capacity,” he said.

Tensions between the federal government and Texas have played out in several court cases that are focused in and around a park in Eagle Pass known as Shelby Park, where state officers have concentrated many of their enforcement efforts.

In January, the state barred Border Patrol agents from gaining access to the river bank along the park, though federal agents can still use the boat ramp there.

Federal agents have at times cut the concertina wire, placed by Texas National Guard troops along the river bank at Eagle Pass, in order to assist migrants who are trying to climb out of the river. The Supreme Court, in a separate case, sided with the federal government and said the agents could cut the sharp wire when necessary.

Those tensions were not evident along the river on Tuesday afternoon, as federal border agents stood on a pair of U.S. Customs and Border Protection airboats, and two smaller craft belonging to the Texas National Guard stood nearby.

Further north along the river, state troops continued to install new razor wire and fencing to prevent migrants who come ashore, including those who may be legally seeking asylum, from reaching Border Patrol agents and turning themselves in.

J. David Goodman is the Houston bureau chief for The Times, reporting on Texas and Oklahoma. More about J. David Goodman