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Notes
- 1.
Forbearance is the law's intentional and revocable non-enforcement for seeking rent (Holland 2016). Many examples show that the Pakistani state has favoured the powerful by the non-observance of the rules, providing benefits and preferential treatments at the expense of the poor.
- 2.
Income tax is the prime example of a direct tax; it is levied directly on the incomes of the individual consumers in the economy. It can be designed to take account of the taxpayer's circumstances. In contrast, indirect taxes are levied on market transactions and are paid at the same rate irrespective of the taxpayer's income. Several children, age, health—to mention just a few of the taxpayer characteristics that have over time been considered in the design of the personal income tax. This tailoring of the tax to the individual's ability to pay makes it such a potentially important instrument for the redistribution of income (Sandmo, 2001).
- 3.
Also known as a consumption tax. In Pakistan, indirect taxation is generally levied at over 17%, one of the highest in South Asia or elsewhere.
- 4.
Financial inclusion, which can be defined as the situation in which “individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance—delivered in a responsible and sustainable way”, is one of the important policy tools to increase welfare, reduce poverty and enhance macro-economic stability (Oz-Yalaman, 2019).
- 5.
Informal sector, as the term is often coined, or shadow, hidden, black, parallel economy, is defined as “a set of economic activities that take place outside the framework of bureaucratic public and private sector establishments”. Hart (2008).
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Mumtaz, Z. (2022). Conclusions, Implications, and Avenues of Future Research. In: Informal Social Protection and Poverty. Springer, Singapore. https://doi.org/10.1007/978-981-19-6474-9_9
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