Corporate corner: IGC highlights salary incentive for tax collectors

Giving incentives to urban property tax collectors increased amount of tax collected by 30%-40%


Press Release January 20, 2015
IGC-funded economists found that giving incentives to urban property tax collectors increased the amount of tax collected by 30% to 40%. STOCK IMAGE

KARACHI:


Salary incentives for tax collectors in Pakistan could significantly increase the amount of taxes raised, according to a new film released by the International Growth Centre (IGC).


According to the video “Taxing Pakistan: How to motivate civil servants”, showed the results of a “pay for performance” scheme that was tested in Punjab with the Excise and Taxation Department by leading economists. IGC-funded economists found that giving incentives to urban property tax collectors increased the amount of tax collected by 30% to 40%. Public satisfaction in the work of tax collectors was not affected, and the increased revenue more than paid for the reward scheme.


Published in The Express Tribune, January 21st, 2015.

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